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Beach (ASX:BPT) share price up: Oil prices predicted to stay higher for longer

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The Beach Energy Ltd (ASX: BPT) share price is up 0.6% at the time of writing, reaching $1.71.

Over the last month alone, Beach shares have gone up by 13%. In the last six months it has surged 69%.

The oil price has jumped in recent weeks amid the Russian invasion of Ukraine.

But there could be more rises as the US and UK are banning Russian oil. The BBC reported that about 8% of US oil and refined product imports come from Russia, while Russia makes up about 6% of the UK’s oil imports.

The US President Joe Biden indicated this decision is to hurt “the main artery of Russia’s economy”. Russia is one of the world’s biggest exporters of oil, along with the US and Saudi Arabia.

However, President Biden acknowledged that the move could lead to higher oil prices for consumers.

This may be having an impact on the Beach Energy share price considering it’s an oil resource business.

The Santos Ltd (ASX: STO) boss Kevin Gallagher has suggested that the banning of Russian oil could lead to very high oil prices for a while. Mr Gallagher said at the Australian Financial Review Business Summit:

Supply’s struggling, it’s struggling right now for a number of reasons. Projects are now taking twice as long to get up and get approved.

We could be stuck with very high prices, unhealthily high prices for some time.

He suggested this could remain the case because the supply gap can’t be filled, unless there is a change in government policies globally.

Beach Energy share price snapshot

Since the start of the year, Beach shares have risen around 30%.

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