Oil prices surged when markets reacted to a decision by OPEC to maintain production levels. That move reduces future supply flexibility, which tends to push prices up.
At the same time, attacks and escalating conflict in Ukraine added new geopolitical risk. War-related instability often spooks markets, as investors fear supply disruptions — especially in energy and fuel markets connected to Europe.
As a result, global benchmark crude prices increased by more than one dollar per barrel during that trading session.
🔎 Why It Matters
Supply uncertainty + conflict = higher energy prices. When major producers hold output steady (rather than easing supply), and global tensions are high, oil becomes more expensive. That impacts not just fuel but global trade, inflation, and cost of living — especially in countries that import oil.
Ripple effects worldwide. For energy-importing countries (like many in Asia), rising oil prices can drive up petrol costs, shipping costs, and inflation. That can strain economies, especially if wages don’t keep up.
Pressure on governments & consumers. Higher prices often lead to social and political pressure — governments may face calls to subsidize fuel or regulate prices; households may see tight budgets.
Signals to markets. Rising prices may encourage producers or speculators to invest more in energy markets — which could lead to more volatility.