Global oil prices rose on Thursday, with Brent crude reaching $110.11 per barrel following fresh attacks on Saudi Arabia that have heightened concerns about global oil supplies.

Brent crude increased by $1.29, or 1.2%, to $110.11 per barrel, while US crude oil rose by 97 cents to $98.12 per barrel.

According to Reuters, the increase followed fresh attacks by Yemen’s Houthi group on Saudi Arabia, targeting an oil field and a civilian airport.

Two people were killed in a drone attack on a Saudi oil field, while another person died and eight others were injured in an attack on an airport in Dammam.

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Following the attacks, the United States ordered some diplomats and their family members to leave Saudi Arabia amid growing security concerns.

The developments have heightened fears that continued attacks could disrupt oil production and transportation in the Middle East, a region that supplies a significant share of the world’s oil.

Shipping data from Kpler showed that at least 18 attacks on ships had been recorded over the preceding two weeks.

Analysts also warned that attacks on oil tankers were spreading beyond the Strait of Hormuz into the Gulf of Oman, putting more oil shipments at risk.

Meanwhile, tensions between Iran and the United States remain high, with Iranian officials warning that the country is prepared to defend itself against any threats.

In the United States, crude oil inventories fell by 3.06 million barrels to 412.5 million barrels last week, adding to concerns about global oil supplies.

The US government has also announced plans to release part of its emergency heating oil supplies through loans in an effort to help contain rising fuel prices.

What it means for Ghana

For Ghana, the rise in global oil prices could lead to higher petrol and diesel prices at the pumps, particularly if crude oil prices remain elevated and the cost of refined petroleum products increases.

Higher fuel prices could also push up transportation and distribution costs, potentially leading to increases in the prices of food, goods and other essential services. This could place additional financial pressure on households and increase operating costs for businesses.

The impact on Ghana’s economy could be mixed. As a crude oil producer, Ghana could earn more revenue from petroleum exports when global prices rise. However, higher international prices could also increase the cost of imported refined petroleum products and place pressure on consumers and businesses.

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The extent of the impact will depend on how long prices remain high, movements in the Ghana cedi against the US dollar, international refined fuel prices and domestic fuel pricing arrangements.

If the current supply concerns persist, Ghana could face renewed inflationary pressures, making fuel prices and their effects on the cost of living important developments to watch in the coming weeks.

DR/MA

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