Russia’s invasion of Ukraine earlier this year sent crude oil prices soaring because of the sanctions on Russian oil. Production cuts by OPEC+ also contributed to rising oil prices. The recent G7 price cap of $60 on Russian seaborne crude oil exports will likely make the country cut its oil output, leading to further supply pressure.
However, despite the potential supply shortage and increase in demand due to the easing of COVID-19 restrictions in China, oil prices recently fell to their lowest levels this year on concerns over uncertain global economic conditions.
