What causes oil prices to fluctuate this week?

Oil prices surged by nearly 4% on Tuesday after Saudi Arabia flagged possible production cuts, following an industry report that signaled shrinking US crude stockpiles.

U.S. crude inventory in the Strategic Petroleum Reserve (SPR) fell by 8.1 million barrels in the latest week to the lowest level in more than 35 years, according to data from the Department of Energy.

Oil has soared in 2022, coming close in March to an all-time high of $147. However, the potential revival of a nuclear deal with Iran and recession fears eased gasoline demand. Oil has lost around a quarter of its value since early June on concerns over an economic slowdown.

"Oil continues to march higher today as the market digests comments regarding potential cuts from OPEC+," said Stacey Morris, head of energy research at VettaFi.

Adding further support to prices, Kazakh oil exports may be disrupted for months due to damaged moorings.

There remain many factors influencing the oil price right now. Mooers, what are the causes of high oil price?