The geopolitical headwinds have driven energy prices significantly higher this year. Oil prices had crossed $100 per barrel as Russia locked horns with Ukraine. Later, oil prices rose to over $120 per barrel at one stage when the United States and its western allies imposed sanctions on Russia, the third largest oil producer in the world.
Although energy prices are down from their highs earlier this year due to global recession fears and a strong dollar, OPEC+ recently announced that it had agreed on steep oil production cuts. OPEC+ reported its decision to cut oil production by 2 million barrels/day, citing rising interest rates and a weak global economy.
