For the past year, one of the biggest stories in the global economy has been the continued increase in oil prices. While oil prices around 1 year ago were lass than $50 per barrel, the prices per barrel have continued to increase steadily. Today, the price per barrel is more than $70 and many people think that it could continue to increase. Overall, some believe that it could hit more than $100 per barrel by the end of 2018 (https://www.investopedia.com/news/crude-oil-price-forecast-100-barrel-2019/).
One of the reasons why oil prices could increase is that there is a continued level of tension with some of the oil rich countries. One issue has been the continued tension with political leaders in both Iran and Syria. Since these countries control much of the world’s supply, it is continuing to have an impact on how the product is disbursed across the world.
Another reason why oil could increase is that there will continue to be a lot of use for it. The global economy is continuing to be pretty strong, which encourages more shipments and travel. This leads to a higher demand and will likely push oil prices up. At the same time, some of the other forms of energy, such as solar and natural gas, have not yet been able to become efficient enough to be more affordable.
If the price of a barrel of oil does continue to increase, it could have a major impact on the world. One of the most direct impacts that it will have is an increase in gasoline and travel expenses. While the average gas price was nearly $4 per gallon about ten years ago, many people have enjoyed lower gas prices over the past few years. However, this could be coming to an end as the average price is now more than $3 per gallon.
This will have a major impact on people and the of the economy as well. Due to higher gas prices, the price of shipping will increase, which will likely lead to an increase in most consumer goods. This will also come at a time when interest rates are increasing and other economic changes are also taking place.