Jan 21, 2022 - Economy

Climbing crude oil heads for reckoning

U.S. benchmark crude oil futures price, per barrel
Data: FactSet; Chart: Axios Visuals

U.S. crude oil prices reached the highest level in seven years this week, amid supply disruptions and geopolitical jitters.

Why it matters: The climbing cost of crude — which is an input cost into virtually everything that is transported — will add to the inflationary pressures that are bedeviling politicians, policymakers and consumers.

What happened: On Monday, Yemen’s Houthi rebels used drones to destroy fuel tankers in the United Arab Emirates. The U.A.E. is OPEC’s third-largest producer.

What’s next: Analysts and traders are beginning to think that crude-consuming countries may move toward another coordinated release of strategic reserves to quell the rise in crude.

  • President Biden said Wednesday, “There's going to be a reckoning along the line here as to whether or not we're going to continue to see oil prices continue to go up.”

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