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Why Are Oil Prices Rising?

Oil prices are determined by global supply and demand. Oil prices were on edge before the Russian invasion of Ukraine as supply growth was not matching global demand. As a commodity, an increase in the use of oil and/or a reduction in supply leads to an increase in its cost.

Oil prices heavily reflect evolving situations around the world. Recent events had a massive effect on global prices with over a quarter of the EU’s imported crude oil coming from Russia. Global oil market prices skyrocketed instantaneously once news broke of the Invasion and the effect was felt right around the world.

Here at Lambes Oil, we began the difficult task of sourcing our oil, with uncertainty surrounding its supply. This was no easy task and it was a result of its soaring demand. Despite the shortage, we remained committed to meeting our customer’s needs. Oil is the lifeblood of many industries. Since the 1950’s Oil has become the world’s most important source of energy. Its supply is fundamental to modern society, a global shortage would be catastrophic.

Thankfully, our biggest fears proved untrue. Lambes Oil has a long-standing relationship with Top Oil, a leading supplier of oil products in Ireland. Top continued to source oil for us despite the unforeseen challenges, with sufficient supplies from other parts of the world such as the Middle East and North Africa, among many others.

Is there any sign of the price of oil falling?

The price of oil has begun to slowly reduce. Nevertheless, it’s unlikely to return to levels seen before the invasion for some time. The oil market remains highly volatile and subject to evolving markets around the world. It’s also important to bear in mind, that the price the consumer pays is heavily taxed. Oil remains some of the most taxed products in Ireland.