Global demand for oil is back to where it was pre-pandemic, but Saudi Arabia is holding back production to such an extent that it is putting continued upward pressure on price.

Gas is $2.14 a litre in the metro region, with no significant relief in fuel prices in sight. In fact, consumer watchers predict that the next change will be a significant increase.

Larry Short, Senior Investment Advisor with Short Financial, a branch of IA Private Wealth in St. John’s, says the Saudis are holding back a significant amount of production totaling about 2 million barrels a day, which would cause a shortage in and of itself, regardless of other factors.