Oil prices are continuing to surge. The Israel crisis has only exacerbated already high oil prices. Saudi Arabia and the OPEC countries decided to reduce production till the end of the year pushing up global oil prices.

What’s the effect going to be on investors and the economy?

Oil is over $90 a barrel, the highest we’ve seen in many years. The US has the lowest oil reserves they’ve had in years. The high oil prices could allow the US to increase its oil production and turn a profit which could push up the oil prices even more.

Higher fuel prices mean increased transport costs and consumer product prices, increasing inflation and keeping it higher for longer, thus delaying global inflation reduction relief.

Energy stocks generally always perform well, but there is a global shift as countries search for self-reliant alternate energy sources such as solar and wind to decrease their dependency on oil and gas and the economic fallout it causes.

Is it time to diversify into alternative energy investments and leave fossil fuels behind? Only the future will tell, but it is evident that fossil fuels are still controlling global economies despite the turn to alternative energy sources.