Oil gets scarcer because the oil cartel decides to lower production, not because there’s a real scarcity. ARAMCO’s exploration + extraction cost is around $5 per barrel and they sell at $120.
There are many reasons, including sanctions on Russia, Venezuela and Iran. Saudi Arabia is also losing the war in Yemen, so they are in a difficult position.
Oil gets scarcer because the oil cartel decides to lower production, not because there’s a real scarcity. ARAMCO’s exploration + extraction cost is around $5 per barrel and they sell at $120.
There are many reasons, including sanctions on Russia, Venezuela and Iran. Saudi Arabia is also losing the war in Yemen, so they are in a difficult position.