The World Bank has warned that trouble in the Middle East could make it hard to get oil. Every day, anywhere from 500,000 to 2 million barrels of oil could be taken off the world
ALSO READ: Interesting stories
market because of a small problem there. This could cause the price of oil to rise to between $93 and $102 per barrel. The price of a barrel could go up to $121 if the problem gets worse and there are 3 to 5 million barrels of oil lost every day.
The worst thing that could happen is that 6 to 8 million barrels of oil a day could be taken away. This is just as bad as what happened during the Arab oil boycott in 1973. Then the price of a barrel of oil might go up to $157.
LEARN MORE: Read blogs and articles here!!!
The fighting between Israel and Hamas hasn’t really messed up the oil market yet. According to a report, this might be because the world economy is better at dealing with problems caused by oil prices. If there was an energy problem in the 1970s, many countries did things to keep their oil prices from going up or down too much. Among other things, they cut down on the amount of oil they needed, found more energy sources, and stocked up on oil.
Based on the World Bank’s general estimate, the price of a barrel of oil will be around $90 this quarter and then fall to an average of $81 next year because the world economy is not growing very quickly.
They also think that prices for things like supplies and goods will go down by 4.1% next year and then stay the same in 2025 and thereafter.
ALSO CHECK: Affordable products