Oil prices edged higher on Monday, as concerns about tight supply continued to outweigh concerns about a potential global recession.
Brent crude futures rose 51 cents, or 0.5%, to $111.74 a barrel by 0345 GMT. U.S. West Texas Intermediate crude futures rose 52 cents, or 0.5%, to $108.67 a barrel.
The International Energy Agency (IEA) said on Friday that global oil supply would fall by 1.4 million barrels per day (bpd) in 2023, as demand is expected to rise by 2.1 million bpd.
The IEA also said that Russian oil production could fall by 3 million bpd in 2023, as the country faces sanctions from the West.
The combination of tight supply and rising demand is likely to keep oil prices elevated in the near term.
What does this mean for consumers?
The rise in oil prices is likely to lead to higher gasoline prices for consumers. Gasoline prices in the United States are already at a record high, and they are expected to continue to rise in the coming months.
The rise in oil prices is also likely to have a knock-on effect on other prices, as businesses pass on the higher costs to consumers. This is likely to lead to higher inflation, which will make it more difficult for people to make ends meet.
What can be done to address the rising oil prices?
There are a number of things that can be done to address the rising oil prices. One option is to increase production from other countries, such as the United States and Saudi Arabia. Another option is to invest in renewable energy sources, such as solar and wind power.
However, it is important to note that there is no easy solution to the rising oil prices. The global economy is heavily reliant on oil, and it will take time to transition to a more sustainable energy future.
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