Why are Gas Prices so High?

During the pandemic, The Organization of the Petroleum Exporting Countries (OPEC) Currently, the Organization comprises 15 Member Countries – namely Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, IR Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela. These members as well as key players not mentioned in organization like united states and Canada, and Russia cut oil production to keep oil prices at certain level. As the demand increased, they have not increased production to keep pace, which increases demand thus increasing profits and the price of oil.

Some other reasons include:

· COVID-19 situation gets better more people start travelling increasing demand for fuel

· Russia invading Ukraine, Russia is top 3 in global oil production

· War in Ukraine continue to impact the global market because of the sanctions imposed on Russia

· Decrease in world oil supplies are responsible for higher gas prices

· Russia supplies 10% of the world oil needs and ranks 3rd behind United States and Saudi Arabia in world petroleum production rankings.

· The value of the U.S. dollar declines as gas and oil prices rise

The value of Russian Ruble increases because the demand for gas is high

GIDDO TOTO

Hip-Hop Artist

Writer, Blogger

CEO Kingkush Entertainment Inc.

LONDON ONTARIO