Oil prices keep getting higher – what will happen next?

The oil price is getting higher and higher. This time last year it was $66 a barrel. On 22nd May it reached $135 a barrel, jumping by 2% in just 24 hours. It seems that when the United States announced that its stocks (or as they say inventory) of oil showed that they are holding 5.4 million barrels less than they used to hold, the market expected the US to buy in oil to make up the shortages and that would cause prices to rise as demand rose.

There are various differing takes on why the oil price is rising and where it will go. Continue reading