Oil prices just took a surprising turn, and it's all because Russia decided to stop selling fuel to other countries for a while. This unexpected move has made oil prices go up.
So, why did Russia do this? Well, they want to make sure they have enough fuel for their own needs, especially as winter is approaching.
This decision has left many countries concerned about having enough heating oil for the cold months ahead.
To give you an idea of how big a deal this is, one type of oil, called Brent Crude, went up by 32 cents, reaching $93.59 a barrel.
In the United States, another type of oil, West Texas Intermediate, increased to $90.27 a barrel.
Why it went up strongly
But why do oil prices react so strongly to this news? It's because oil is crucial for many things, like making gasoline for cars and heating homes.
When the supply of oil becomes tight, prices tend to go up, and that can impact what we pay for gas and other goods.
Last week, oil prices faced a setback when the Federal Reserve hinted at raising interest rates.
This made people worry about the economy slowing down, which could lead to lower oil consumption.
Interestingly, before all this, oil prices had been on the rise for three weeks straight.
Experts predicted an oil shortage in the coming months, pushing prices up by more than 10%.
Major oil producers like Saudi Arabia and Russia even decided to cut down on the oil they sell to the world.
In the United States, the number of oil rigs dropped, despite higher oil prices. This added to the complexity of the oil price puzzle.
In the end, it boils down to a simple idea – when something we all depend on, like oil, becomes scarce, prices tend to rise.
This can affect our daily lives, from how we commute to how warm our homes are in winter. So, keeping an eye on oil prices can tell us a lot about the world we live in.
