Oil prices are moving sharply once more and they are dragging the global economy along for the ride. Crude has been climbing as concerns grow about supply disruptions in several major producing regions. At the same time, demand is looking shaky as global growth slows. When supply is tight but demand is unsure, prices jump around and that is exactly what we are seeing now.
For consumers this is not great news. Higher crude prices usually mean more expensive petrol and higher heating costs. Businesses feel it too. Companies that rely heavily on transport or energy face rising bills, while oil producers and exporters enjoy the upside.
There is also the inflation problem. If oil keeps rising it puts pressure on central banks to delay interest rate cuts because higher energy costs push overall prices up again. That affects borrowing, spending and confidence across the economy.
The strange part is that there is no single clear reason for the move. It is a mix of geopolitical tension, changes in supply from big producers and nervousness about how strong the world economy really is. What we do know is simple. When oil gets jumpy, everything from the weekly shop to the stock market feels it. This story is far from finished.