Oil Prices Surge After Surprise Move To Cut Output

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Russia also stated that it would extend its cut of 500,000 barrels per day until the end of the year.

On Monday, energy giants BP and Shell saw their share prices rise by more than 4%.

When Russia invaded Ukraine, oil prices skyrocketed, but they are now back where they were before the conflict started.

However, the United States has been urging producers to increase output in order to bring down energy costs.

Last year, high costs for fuel and energy contributed to inflation, or the rate at which prices rise, which put financial pressure on many households.

Yael Selfin, boss business analyst at KPMG, cautioned that the oil value flood could make the fight to cut down expansion harder.

However, she stated that rising oil prices will not necessarily result in higher energy costs for household members.

She stated, “Using earlier market expectations, the energy price cap that households benefit from has already been determined.” In addition, gas and oil account for the majority of household energy consumption.”

She stated, “We could see a rise in the price of fuel, which will have the biggest impact on transport costs.” Additionally, this could increase other costs, which would delay the rate of inflation.”