Oil prices are at $105 per barrel. This is its highest level since 2014. This comes as Russia is conducting a large-scale military invasion of Ukraine. Russia is the world’s second largest oil producer with 10,000,000 barrels produced per day.
Oil prices have spiked in recent months as the Organisation of Petroleum Exporting Countries (OPEC) refuses to increase production to meet growing demand. Global energy markets in general have seen increased prices due to shortages in Coal, Oil and Natural Gas as winter demand and the end of COVID-19 lockdowns have led to much higher demand than was projected.
Western countries have threatened harsh economic sanctions if Russia invaded Ukraine. This has caused fear that sanctions would impact Russia’s energy exports, which would make a bad situation worse with supplies already struggling to meet demand. Russia currently supplies 40% of Europe’s energy.
As a new oil exporter, oil prices can have a significant impact on Guyana’s revenues as every $1 increase in oil prices increases our revenue per lift of crude by $200 million GYD.
