KiviNovice

After the November’s (USD 80.8) and December’s (USD 74.3) fall in oil prices, it became clear that this was a temporary situation. The price of a barrel of Brent oil has risen above USD 88 per barrel, to the highest value in seven years, which is close to our estimate for the average of the year (USD 85), while the majority of institutions estimated a few months ago that the price will fall to around 70 to 75 USD. The acceleration in price was due to an attack on storage facilities in the United Arab Emirates. Geopolitical tensions in Eastern Europe and concerns about sufficient spare capacity in OPEC countries have also contributed to the high rise. Rising oil prices will once again contribute to rising year-on-year inflation in all countries.