Fuel Price Hike: Ongoing Conflicts Fuel Global Economic Instability
Nigeria and other countries worldwide are facing soaring fuel prices due to the ongoing war between the USA and Iran, Russia and Ukraine. The reverberating effects of these conflicts have led to a heavy toll on citizens.
According to Amos Oboh, an energy expert, crude oil and its derivatives are essential for transportation and industrial use, leading to fluctuations in their prices. Strong economic growth and industrial production tend to increase the demand for oil, while oil prices are highly cyclical and often shift due to historical events, supply and demand imbalances, and geopolitical tensions.
Oboh also noted that the Organisation of Petroleum Exporting Countries (OPEC) has sought to influence global oil prices by limiting the supply of crude. The OPEC+ alliance with Russia and other exporters has reinforced their power to set prices.
Franklin Obed, an energy analyst, attributed Russia's ability to fund war campaigns to the oil market. He explained that higher oil prices allow Moscow to bypass Western price caps and sell its Urals crude at a premium, channeling billions back into frontline operations against Ukraine.