During the 1970s, Arab states used oil as a ‘weapon of embargoes’ to punish Western governments for supporting Israel. In the 21st century, on May 20, 2022, the heads of the 27 European Union member governments agreed to turn the weapon on themselves. The war in Ukraine, which has pushed countries in the West to shun Russian energy supplies, has only fuelled oil prices. Russia’s war in Ukraine went from a threat to reality in late February,
Oil prices
Oil sizzles, economy slips: Is there a respite in sight anytime soon?
Synopsis
Currently, global crude oil is trading at USD120 per barrel – a level last witnessed in 2008 -- and petrol is being retailed at over INR107.5 per litre. Geopolitical tensions and a growing disparity between supply and demand have driven up the prices. A rising crude is casting shadow over the economy, thereby stoking inflation and eroding consumer confidence.
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