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Home Politics

High oil prices, Middle East politics cast shadow over summer’s start

by todayminutes
June 1, 2022
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We are into a new week of potentially significant oil market moves. While Americans were observing Memorial Day, and the unofficial arrival of summer, the oil price was pushing past $120 per barrel.

Reportedly, high gasoline prices were not reflected in a discernible drop in road trips, but it would be a stretch to think that American motorists are not bothered by the prices at the pump and/or feel rich enough not to care. Multiple factors go into the oil price, and it would be rash to think the trend is not likely to be upwards.

Part of the significance of the coming days is the occurrence of significant important meetings. Last week the energy and environment ministers of the G7 nations (the Western industrialized nations) met in Germany and recommended that “OPEC pump more.” This week, on June 2 and 3, OPEC will be meeting along with the Russia-led OPEC+ group. Their definition of pumping more is a pre-agreed paltry 400,000 or so barrels a day.

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