The fall in oil prices since May was triggered by fear of a recession, especially in the US, and the efforts of many central banks to increase inflation rates, which led to a slowdown in economic growth.
However, this has been mitigated by the fact that the world economy is currently facing a supply shortage on the energy front. As global demand approaches pre-pandemic levels, there are signs that fuel demand continues to support.
Supply concerns have arisen as a result of the oil production capacity looming in Saudi Arabia and the United Arab Emirates, and political unrest in both Ecuador and Libya. Given that these countries are among the few that could fill the void left by the Russian sanctions, any sign of disruption could play a role in supporting or rising oil prices.
On the other hand, US President Joe Biden last week called on Congress to suspend the federal gasoline tax for three months. President Biden, calling for a gas tax exemption, further said he wanted sellers to hand over the entire reduction to consumers and industry, to refine more oil for gasoline in order to increase supply.