Why is oil growing?
After the catastrophic collapse of the world oil price, some surprise and even some suspicion among the Russians caused its recent rise. The question of why oil is rising in price and how it threatens our country concerns everyone. Understanding the importance of oil in the global economy is possible by reading the article What is oil. But its value jumps are alarming. And if the fall in the price of oil has already become somewhat familiar and many times explained why oil is growing, it is not clear - it would seem that there is no reason for that.
How much has oil risen
If you think about it, the oil prices are not so strong and have grown. The current 56 (approximately) dollars per barrel did not "grow" to the figure of $ 88, which in 2013 was considered very low. One can only be glad that the matter did not reach the situation of 1998, when a barrel was given less than eight “bucks”. However, it is too early to assume that the price is good.
Why is the price of oil rising?
The general rules for pricing, and the reasons for the rise in prices of goods are fully disclosed in the article Why prices are rising.However, the current oil situation has a different background. The jump in the value of "black gold" is explained by only one factor: the world market is waiting for a reduction in production volumes. The strike of oil workers in the States has already somewhat reduced the volumes supplied, and at this time the Minister of Saudi Arabia, responsible for the oil industry, is also in talks to reduce production.
Than the rise in oil prices threatens Russia
A fundamental change in the situation, according to analysts, is not expected. First, the rise in prices has slowed down and will soon stop before reaching the previous, “good” mark. Secondly, production volumes will not be reduced to the extent that Russia becomes a monopolist in the market. Thirdly, even the “braking” American oil industry has reserves of already extracted oil.
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