Saturday, 13 January 2024 02:57

How does the rise in oil prices affect the economy?

Written by Karla Gutiérrez

Rising oil prices affect the salvadoran economy because it depends on crude oil imports and the ups and downs of the international market, which also causes food prices to rise.




The increase in gasoline and diesel affects food prices, transportation, indirect manufacturing costs and final cost, as well as the final sale price.

This variable situation affects everyone from the Russian invasion of Ukraine, natural phenomena and even the chinese real estate crisis, everything affects us irremediably in everything we consume.

However, despite the rise in crude oil annual average oil prices in 2024 and 2025 will remain close to their 2023 average, according to the U.S. Energy Information Agency (EIA). Global supply and demand for petroleum liquids are expected to be relatively balanced over the next two years.

U.S. commercial oil stocks increased by 1.3 million barrels last week, according to data released wednesday by the U.S. Energy Information Agency (EIA).

This is a rare crude oil inventory movement at this time of year in the middle of the northern winter.

The figure surprised the market, which had expected a drop of about 150,000 barrels for the week ending january 5, according to the consensus gathered by Bloomberg, which will allow for a slight stability in the global supply.


Translated by: A.M