Visualizing Oil Prices in Response to Economic Events

In the past, I've talked about where America gets its oil, and how data is more than just "the new oil". 

During the worst of the pandemic, oil prices dropped almost 40%. They've now risen 216% from that pandemic low. With gas prices skyrocketing, it's probably time to look at historical oil prices.

Visual Capitalist put together a simple infographic. 

via visualcapitalist

So why are prices so high? Unfortunately, large portions of the world's oil reserves are in regions prone to political conflict.

Currently, the Russia-Ukraine conflict is leading to supply uncertainty and rising prices.

Meanwhile, oil companies are bringing in record profits. 

Oil prices are a complicated topic because supply and demand aren't particularly responsive to price changes in the short term. Regardless of price, people need to drive. And, regardless of demand, it takes time and money to drill new oil wells. 

As a result, you can see mismatches, like today, where uncertainty has raised prices, but oil companies are doing tremendously well. 

The question now becomes ... where does it end? Does it take a resolution to the current conflict? Or, will prices reach a ceiling and fall back down based on other factors?