link to article:https://www.reuters.com/business/energy/oil-rises-7-year-high-turkey-outage-adds-tight-supply-outlook-2022-01-19/
Summary: On Wednesday Oil prices were higher than usual this was caused by a fire on a pipeline that stretched from Iraq to Turkey that stopped flow shortly. This stop of flow increased concerns about the tight short-term supply outlook. The flow has since resumed but the oil prices haven’t steadied quite yet. This fire was caused by a falling power pylon, not an attack, said a senior security source. Supply concerns have been high since Yemen’s Houthi group attacked the United Arab Emirate’s OPEC’s third largest producer. At the same time Russia the second highest producer has been gathering troops near Ukraine’s border. All these factors are worrying people about the future for oil and the price it will be at. Data shows that the price of oil will continue to increase but only time will tell what will happen.
Analysis: This really shows how delicate the oil industry is. As it said in the Article Russia currently isn’t really concerned about producing oil and is more concerned with the Ukraine issue and how they plan to deal with that. Russia is the second largest oil producer in the OPEC so with them not producing as much oil it makes the industry more dependent on countries such as the UAE which was recently attacked. This shows how depend the world is on oil and how they should find some alternatives. For example if the world had more electric cars then we could save money by not buying the overpriced oil and reduce carbon emissions that are caused by oil use.
How this relates to class: This shows how IGOs work with OPEC and how they deal with issues. In this case two of its largest producers are having trouble producing for multiple reasons. But with how reliant the world is on Oil they can simply raise the price of the oil they can produce to counter the effects of having low stock.