Quote:
Originally Posted by JMintzer
Then please explain the HUGE jump in prices from January 2021 up to "Putins price hike"...
 |
During the Pandemic the oil companies CAPPED off many wells - thus limiting supply. So, prices went up during the summer of 2021. There was a bump up in price at about Jan 2022 because Russia was staging troops for an invasion of the Ukraine. This was due to increased global risk. Then Russia invaded and by March 2022 the world realized that oil supply was at greater risk - and the price SPIKED upward
........Today the WORLD RISK is VERY HIGH. and the US oil companies can NOT react quickly enough to uncap their wells and get MORE oil flowing. Plus US and world DEMAND has increased because of pent-up desire to TRAVEL All those factors contribute to the HIGH price of oil and gas today. Of those factors, The Russian invasion had the greatest effect and lit the spark toward HIGH PRICES of oil. And oil prices are also a BIG factor in US inflation. Thanks for the question
- I hope that helps.