The war in Ukraine caused a spike in oil prices. The middle east is, as everyone knows a highly sensitive area for the oil industry. If the conflict in Gaza continues or spreads to the wider area, we could see volatility in markets that will cause prices to rise further.

With prices currently well above average and tensions rising daily, there are predictions, warnings of above 150 USD per barrel! This would be higher than the 2008 record of 147 USD.

Increases in oil prices cause a knock on effect that goes further than your transport costs. Food prices will rise, and this at a time when people in developed countries are only just getting over the recent rises in everything. Many people in developing countries are already going hungry. Everything could go up again.

I wanted to add that, while this article is non political and purely about oil, in the circumstances it seems wrong to not acknowledge the suffering of many thousands of people at this time. The price of oil is insignificant compared to this.

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Aba Selassie
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Replies

• Paul Rosenberg (Contributor) (Dec 19, 2023)
  As a result of the war in Ukraine the Red Sea and Suez canal route increased in importance for oil traffic. This has now changed due to the Yemen Houthi attacks on shipping in this area, forcing many companies to redirected shipping round the south of Africa.

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