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Chart of the day: The factors that have been pushing oil prices higher

Yahoo Finance Live anchors break down the chart of the day.

Video Transcript

- Brian time for today's Chart of the Day.

- It is time for Chart of the Day. And, today, we are talking all about oil. Bank of America Global Research out with a note yesterday illustrating the many push and pull factors on the price of Brent Crude over the last 18 months. And this really shows that absent the Russia-Ukraine conflict, which is illustrated here in green, the contribution at least, it's really the reopening associated with the vaccination campaigns in the COVID story in light blue that otherwise would have led to price declines.

So, again, this isn't necessarily to say that, well, it's all Russia-Ukraine, that's the reason for broad-based inflation. But when you take a look at this chart, it does show that, well, if that wasn't around, prices would be a lot lower than they are right now.

- Yeah. That's incredible to see that spike from, what, March, end of February, to now. I mean, we're looking at Russia-Ukraine. I mean, the China story, of course, is under the blue, right. That's where we're talking about in terms of the concerns around demand because that seems to be increasingly a big driver too.

- Yeah, absolutely. And you do wonder because China is not any of the factors that are kind of specifically delineated here, but you can loop that into COVID. If it is the COVID-related shutdowns that led China to perhaps consume less oil, maybe the contribution would be even further downward if China starts to reopen up soon. But, again, this is also, by the way, not necessarily the percentage of increase to the Brent Crude oil itself. It's just the share of the contribution of these events into the price of crude oil, which I think is up 45% year to date.

What's really interesting about all of this is that you have to think about all the factors that go into how all prices are kind of settled. And this comes from an event study, which is an economic kind of process by which it's a little bit inexact. But all in all, you get the general idea that, yep, Russia-Ukraine is obviously a massive contributor on that front.