Oil prices, and therefore oil companies like Q8 – the manufacturers of Q8 T750 15W/40 –rose on Tuesday following fears that there might be a disruption to the supply after Turkish military shot down a Russian jet fighter at the Turkish-Syrian border.
The price of gasoline soared by almost 6% due to limited supplies in the Northeast of the USA just ahead of Thanksgiving.
Benchmark U.S crude oil prices rose by over 4% during intraday trading time following the initial reports of the Turkish incident, which has further soured relations between Turkey and Russia.
The rise perfectly highlights the way in which geopolitical risks can cause panic amongst those in the oil market, even though we are currently experiencing an oversupply of oil that does not look set to recede any time in the near future.
It is almost always the case that an outbreak of violence close to a major oil-producing country, especially if it is in the Middle East where much oil is sourced, will cause a rise in crude oil prices. However, the level of these gains has been somewhat muted this year because of the major stockpiles of oil available, although analysts have claimed that a true supply interruption could cause problems worldwide.
Despite the unexpected 6% rise in oil prices on Tuesday, oil prices are still close to a historic low, due to the expectations of a weaker global demand next year and a robust level of crude oil production