The price of Crude oil reached a 32 month high as the price of Brent crude rose by 6 tenths of a percentage to $73.29. However the surge is not expected to end here. The rise in the price of crude oil has lead to the surge in the price of petrol and diesel which is already becoming unaffordable for the common man. The rise in price of crude oil can be explained by Adam Smith also known as the father of economics, theory of supply and demand. In the year 2020 the world was plagued with an unforeseen once in a century pandemic. .During the time of the pandemic many countries were forced to put its people on Lockdown which lead to a drastic fall in demand which lead to crude oil being traded on the negative thus at that time a decision was taken by the Organization of Petroleum Exporting Countries (OPEC) to cut the supply. In the year 2021 with the discovery of the Vaccine against the coronavirus Economic activity has resumed in most parts of the world which lead to a sky rocketing of demand with which the supply, previously cut could not match. The current price of Brent crude is now at $52 a barrel at the time of Lockdown it was trading at 19 dollars a barrel. According to OPEC’s monthly report of June they expect the demand of crude oil 96.58 barrels per day when in 2020 it was 90.63 barrels per day. According to the same report the demand of crude oil is said to further increase in the second half of the year with more and more of the world resuming economic activity. The international energy agency has predicted that by 2022 the pre pandemic level demand will be surpassed and has asked all oil producing nations to “open the tap” to continue to keep the world running. The rapid increase in the price of crude oil has had a significant impact on the state of India. Petroleum prices have skyrocketed and have become almost unaffordable to the common man. The price of petrol has been raised by 10.8 rupees a litres and in the same time period the price of diesel has been raised by 11.5 rupees a litre with both fuels being sold upwards of rupees 100 a litre.