Oil is back. If only temporarily
After a year in a slump, crude oil prices have been raising this year – and causing concern around the world. The increase has been particularly steep since things opened up – like factories and other businesses reopened. This doubled the demand for crude oil. With a surge of more than 75 percent since November 2020, the situation is grim especially in countries like India, which import crude to meet most of their domestic demand.
Oil exporters are, needless to say, loving the surge
Countries like Saudi Arabia and Russia have been badly impacted by the pandemic. when a global lockdown drastically cut oil demand. Now that demand is back, they are enjoying the rise.
The increase in the price of crude has led to a rise in petrol and diesel process (governments hate that). These developments are not only influencing businesses but also hitting the common man. In this situation, it is important to understand the current crisis, as well as the international and domestic factors that have resulted in oil prices hike around the world.