Geopolitical Issues Led To Surge In Oil Prices In 2024

By Shubhendra Anand , 07 May, 2024

The oil market faces several issues with its price bar in the first half of 2024. Recently, a survey suggested that crude oil prices are affected for several reasons. Geopolitical conflicts in different regions are the foremost reason behind the surge in oil prices 2024.

According to surveys conducted in 2024, crude oil prices are expected to climb higher in the price chart due to ongoing geopolitical issues, inflation conditions, and Federal Reserve policy decisions. These reasons mentioned above will affect the oil market's behavior in 2024. Experts note that geopolitical issues create hurdles in stabilizing economic oil prices. The conflicts in certain oil-producing countries have led to higher oil prices in the last two months of 2023 and the first four months of 2024. However, while oil prices are lowering, elevated prices remain in the market. Therefore, analysts hold geopolitical conflicts as the main reason for the surge in oil prices 2024.

The increase in oil prices has a particular impact on the consumers. The surge in oil prices leads consumers to cut back on other commodities. It is to maintain a balanced standard in the household economy. Therefore, a rise in oil prices substantially impacts a nation's economy. Simultaneously, constant increases in oil prices may lead to consumer's switch toward electric vehicles. The affordability of electric cars serves as a hurdle in consumer behavior. However, the surge in the transition to clean energy and the reduction of emissions from different sources can be essential reasons for boosting electric vehicle buying in the next ten years. Therefore, elevated oil prices can create tension over consumers' oil consumption for many reasons. However, geopolitical issues are the main reason behind the oil price surge, affecting the supply chain.