OPEC is facing challenges balancing the market
Oil supply and prices have been front and center since the Russian invasion of Ukraine, even though Brent prices were already approaching $100/barrel, their highest level since the summer of 2014, prior to hostilities breaking out. The oil markets were already tightening as rapidly recovering oil demand was facing a slow return of production.
This, in combination with ever-tightening sanctions against Russia, which is a major crude oil producer and exporter, has made it into a full-blown crisis. In the Western world, there is widespread support for the tough sanctions on Russia, but it has contributed to further oil price increases. Faced with record-high gasoline prices, the U.S. government is trying to bring more supply to the market.
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