Why Is The Price Of Oil Rising?

[IroNat]

https://www.forbes.com/advisor/investing/high-oil-prices/

"Rising gasoline prices are a direct result of higher oil prices. The price of oil bottomed out in spring 2020, along with a host of other markets, and today a barrel of oil fetches almost $100, driven by strong consumer demand as the world moves on from Covid-19, weak supply as the leading oil producing nations throttle output and a burgeoning war between Ukraine and Russia, the third largest oil producer in the world."
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"OPEC’s plan to throttle back its oil wells, and the commitment to that plan, “will likely maintain upward pressure on prices,” said CFRA chief investment strategist Sam Stovall.

In the U.S., oil producers aren’t in a hurry to expand production. Why? For one thing, they don’t want to invest heavily on new wells only to see supply increase, prices decline and their profits dwindle.

This was a major theme of the fracking boom that helped propel the U.S. to become the number one global oil producing nation over the last decade and a half. Many companies went bankrupt as they overextended themselves building out infrastructure, only to see oil and gas prices plummet on greater and greater supply."