Brent Crude reaches its highest level in over 7 years.
Brent crude hit a seven-year high on Tuesday, January 18, 2022, in anticipation of rising demand, amid concerns about the variety of Omicron Covid and geopolitical tensions.
Commodity prices in Asian trade reached $86.84, a level not reached since the end of October 2014.
The Intermediates of Brent and Western Texas have increased more than 10% this year, since investors get confidence that demand will increase when the world returns to normal and economies reopen.
Analysts have cited rising jet fuel prices as a major reason for easing travel bans in many countries.
Also, hopes for further monetary easing measures by key consumer China to bolster its volatile economy were seen as a key support for the oil market.
Another of the latest clashes was the alleged attack by Yemen’s Houthi rebels in Abu Dhabi, which killed three people in a fuel tank explosion on Monday, the group warned citizens and foreign firms in the UAE.
Reports say the news has raised concerns about supplies from the raw material-rich region.
If crude oil prices continue to rise, the prices of petroleum products in Ghana’s domestic market will rise, resulting in an increase in transport fares. Some oil marketing companies are already selling petrol and diesel at ¢7 per liter, respectively.
In addition, inflation and cost of living are expected to increase. However, the government will earn more from crude oil exports, thus improving revenue.