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North Sea oil controlled by the UK and Norway. This type of oil is generally traded at a slight premium to West Texas light sweet crude. Oil is a key component of world inflation because almost all products are moved by an oil-fired engine at some point before they reach the consumer. Rising oil tends to cause rising gold because gold is a hedge against inflation. For example, as a result of the war in Ukraine in 2022, oil prices rose sharply, pushing up world inflation.