(Source: The Economist)

The price of oil for the past month has been experiencing an upward trend reaching its highest price of $106/barrel since the 2008 financial crisis where it had then dropped to almost $52/barrel. However, this rise in the price of oil has been preceded by a constant increase over the past two years which is duly attributed to the come back of the world economy from its severest recession in history and therefore revamping the demand for oil; an important input to production. Emerging countries such as China and India were the main drivers behind this healing growth as both of their economies are developing at incredible rates and thus increasing demand for primary and intermediate goods of which oil is part of the former and the latter.