Oil Cruises to $111 Per Barrel as Dollar Grows Weak Amid OPEC’s Stance on Russia/Ukraine War

Oil Cruises to $111 Per Barrel as Dollar Grows Weak Amid OPEC’s Stance on Russia/Ukraine War

  • Crude oil has rebounded to $111 per barrel as global oil reacts to Russia's invasion of Ukraine amid OPEC stance on Russia
  • Due to rising demand and the global fallout of the Russian invasion of Ukraine, oil prices have spiked this year
  • China has imposed a series of stringent lockdowns to tame COVID-19 outbreaks, hurting Asia’s largest economy

Crude oil price has crossed the $100 threshold as prices increased and investors concerns grow about global growth which is caused by product markets and weak dollar.

Nairametrics reports that crude oil has gained consecutively for four weeks, the longest run it has had since February as West Texas Intermediate surged towards $111 per barrel.

Crude Oil, Nigeria's economy
Oil price surge as Nigeria's GDP grows Credit: Mike Meel
Source: Getty Images

The price of oil on the rise for four weeks

The price of gasoline and diesel has spiked to records high as the US begins the driving season, which starts in a week.

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One of the world’s highest oil producers, Saudi Arabia has indicated over the weekend that it will continue to support Russia’s role in the OPEC+ group of producers, which is seen as undermnining US effort to isolate Russia over its unprovoked attack of Ukraine.

According to Prince Abdulaziz bi Salman, the Kingdom of Saudi Arabia was hoping to reach an agreement with OPEC+ which Russia is a member of.

Saudi Arabia pledges support to OPEC+

Due to rising demand and the global fallout of the Russian invasion of Ukraine, oil prices have spiked this year.

The cost of energy has grown which causes banks to raise interest rates and increasing investors’ concerns about thawing growth.

In the same vein, China has imposed a series of tough lockdowns to slow the spread of COVID-19 outbreaks which hurts the country.

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Likewise, China has imposed a series of stringent lockdowns to tame COVID-19 outbreaks, hurting Asia’s largest economy.

Breaking: oil price rises to $112 a barrel, petrol subsidy under threat

Legit.ng reported that Global oil prices pulled a surprise on Tuesday, March 1, trading above $110 a barrel amid supply disruptions following Russia’s invasion of Ukraine.

High oil prices mean more subsidy payments for the Nigerian government to sell petrol below the international market rate.

The development is coming even as the United States and other member states of the International Energy Agency (IEA) agreed to release 60 million barrels of oil reserves to tame rising prices.

Source: Legit.ng

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