The world is in the grip of an oil price shock. In just a few months, prices have risen from US $65 a barrel to over $130, causing fuel costs to surge, inflationary pressure to rise and consumer tempers to flare. Even before Russia's invasion of Ukraine, prices were climbing rapidly because of roaring demand and limited supply growth.
Price shocks aren't new. Viewed historically, they are an integral part of oil market dynamics, not anomalies. They have occurred since the birth of the industry.
