The surge in crude prices will likely affect the economies of some countries. The COVID-19 pandemic has allowed several discrepancies in oil prices.
Oil prices soar, as nations lament economic implications
The surge in crude oil rates has changed direction on how the increase in energy consumption is threatening to have negative effects on world economy recovery. This oil surge will affect inflation in most countries battling with the COVID-19 pandemic. The oil has increased to more than 35% this year alone with supplies going to countries that keep demanding oil. Another phenomenon is the military attack on crucial oil installations in Saudi Arabia.
Brent oils have now surged above normal rates for the first time since February last year. With the price at this level, the impact on inflation and the economic recovery of most nations is possible. Countries will have to find a way to cope with the many challenges this will bring.
Countries like Nigeria and Brazil may increase races or stem tax rates like India and Mexico to combat the wave of economic consequences that comes with crude oil. The winners of this oil price will include Russia, Norway, and Nigeria whose governments will get better revenues to help infrastructural development recover better.
Countries will gain and lose from the hike in crude
Countries that would lose include Turkey, India, and Ukraine whose economy has been pegged on oil rates. Also, the Chinese will take a hit because they are the world's biggest importer of crude oil. However, Beijing will take its health and technological innovations to cushion the effects of the hike.
OPEC has pegged daily oil production by several million per day to reduce the number of crude oil pumped into the market. All nations will hope that COVID-19 vaccines will work to prevent further disruptions in oil data.
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