The price of Brent crude oil continues to trade at its highest in 7 years, having risen by around 20% so far this year and is at 93-dollars-50-cents a barrel in midday Asian trade. This, as supply remains tight while demand is picking up.
Supply disruptions are mainly fuelled by political tensions in Eastern Europe with a stand-off between Russia and the West over Ukraine.
Supply also remains tight due to US oil production remaining below pre-pandemic levels. And the Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, are struggling to meet production targets.
At the same time demand for oil is picking up as the global economy is opening up from restrictive measures due to the coronavirus pandemic. But the higher oil price is adding to inflationary pressures, which could derail a speedy worldwide economic recovery.
