Oil price shocks have a long history, but today’s situation is the muddiest

As I see it, the key players that can help curtail this price shock are OPEC – mainly, Saudi Arabia – and the U.S.

By

World News

March 11, 2022 - 4:24 PM

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THE CONVERSATION:

The world is in the grip of an oil price shock. In just a few months, prices have risen from US$65 a barrel to over $130, causing fuel costs to surge, inflationary pressure to rise and consumer tempers to flare. Even before Russia’s invasion of Ukraine, prices were climbing rapidly because of roaring demand and limited supply growth.

Price shocks aren’t new. Viewed historically, they are an integral part of oil market dynamics, not anomalies. They have occurred since the birth of the industry.

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