Brent crude oil today hit $88 per barrel – the highest since October 2014 - following a drone strike at an oil storage site near Abu Dhabi airport in the United Arab Emirates.
The strike, which took place late last night, killed a Pakistani national and two Indian nationals, with an additional six people injured following the explosion. The Houthi rebel group in neighbouring Yemen has claimed responsibility for the attack. A coalition of nations in the region led by Saudi Arabia plan a series of air strikes in retaliation, primarily focusing on Yemen's capital, Sanaa, which is currently occupied by the Houthi.
The price rise puts the international benchmark for oil at its highest in over seven years and there are fears that escalation in the region on top of the current inflation could drive oil even higher in 2022 – bad news for drivers in particular.
Goldman Sachs is now forecasting $100 per barrel at some point in H2 2022, with the financiers believing that OPEC will experience shortfalls in the wake of the current military clashes, as well as a lesser hit to demand from Omicron. JP Morgan believe $150 will be hit next year, though OPEC could decide to release more oil reserves or up production to combat rising prices and even the market back out again – something that will inevitably be discussed in the next few days.