News: January 18, 2022. Oil Prices are Reaching 7 Year Highs
The oil prices have reached a 7 year high today. West Texas Intermediate (WTI) crude price reached US$ 86.55 per barrel. This has occurred in spite of the recent release of oil from the US Strategic Oil Reserve which was done as a measure to reduce gasoline price because it was fueling inflation.
There is significant demand for oil. The expected decline due to the omicron variant of COVID-19 did not really occur. Demand has remained strong and is forecasted to remain strong.
There are supply problems. Russia will not be able to deliver more than half of its scheduled increases in oil production over the next six months. In addition, Exxon Mobil is reducing its output due to concerns related to "reduction of carbon emissions".
The WTI crude oil price is forecasted to reach US$ 96 in 2022 and US$ 105 in 2023.
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Oil price are increasing day by day. This will cause some problems for middle class or lower class families.