Price of Brent crude hit its highest level in more than seven years on Tuesday, 18th January, 2022, on growing demand optimism, easing concerns about the Omicron Covid variant and geopolitical tensions.
The commodity hit $86.84 in Asian trade, a level that has not been since late October 2014.
Brent and West Texas Intermediate have climbed more than 10% so far this year as investors become increasingly confident that the demand will increase as the world slowly returns to normal and economies reopen.
Analysts attributed the easing of travel restrictions in several countries which has seen jet fuel costs soar as a major reason.
Also, hopes for more monetary easing measures by key consumer China to support its stuttering economy were also seen as a key support for the oil market.
Another factor in the latest bump was the claim of an attack by Yemen’s Huthi rebels in Abu Dhabi that triggered a fuel tank blast killing three people Monday, with the group warning civilians and foreign firms in the United Arab Emirates.
Reports say the news fuelled concerns about supplies from the crude-rich region.
If the price of crude oil continue to surge then prices of petroleum products will shoot up on the local market in Ghana, consequently leading to increase in transport fares. Some Oil Marketing Companies are already selling petrol and diesel at ¢7 per liter respectively.
Also, inflation and cost of living are expected to go up.