Here is why oil prices have increased and will continue increasing (if OPEC and Russia keep a steady hand):
- Shell said that in the next decade it would cut production of traditional fuels such as diesel and gasoline by 55%. Its oil output has already peaked
- OPEC and the International Energy Agency said second-half oil demand will outstrip production – quickly drawing down the former glut of crude
- New Government orders banning fracking and killing pipelines
The US has again shifted to be a net importer of oil (it had been a net exporter).
This all leads to oil being $60.15 per barrel on Tuesday and Diesel is $2.88 – unless you live in California and then it is $3.63!