The global oil market is experiencing strong fluctuations as a result of the conflict in Iran, reflecting the direct impact of geopolitics on the pockets of consumers.

Federal data confirms that the price of crude oil in the US rose from sixty-six dollars per barrel in late February to one hundred and one dollars in mid-April, following the coordinated attacks on Iran.

As the main fuel of the industrial economy, oil remains the most critical commodity in the global system. When its supply suddenly changes – as in the case of the closure of the Strait of Hormuz – prices rise sharply in record time.

But as consumers pay more for transport, plastic and chemical waste, the question arises: where exactly does this extra money go? The vast majority of revenues end up with the oil companies and governments that control the resources.

Although the final destination of the money varies according to local regulations and the business environment, in the Middle East, despite increased risks to security and infrastructure as a result of war, production costs remain relatively low.

In countries like Saudi Arabia, where the state controls almost the entire sector, high prices serve mainly to finance public spending and strategic investments. government.

Meanwhile, in the Permian Basin of Texas, USA, US companies are raking in record profits as prices rise much faster than operational costs.

These revenues go mainly to shareholders through dividends and share buybacks, as well as investments for new drilling aimed at increasing capacity in the long term.

Another pattern is seen in the North Sea. In Britain, the beneficiaries are a mix of private shareholders and the state treasury through additional taxes on profit.

However, Norway transfers this income to the Government Pension Fund, which has already exceeded the value of two trillion dollars, ensuring wealth for future generations.

The situation in Russia is completely different. Although under strict sanctions, the industry is dominated by state-owned companies and figures close to the Kremlin. The main beneficiaries of rising prices here remain the oligarchs and Putin’s military-industrial complex, to the exclusion of the common population. /tesheshi.com/

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Source: prizrenpost