The recovery from the interest rate crisis will increase demand for oil, but producers consider supply to be scarce.
11.10. 17:16
Crude oil the price peaked on Monday for many years. Oil is tilted by strong demand for the raw material at a time when supply from the main producers is scarce.
In the afternoon, the North Sea Brent reference price had risen to a high of three years at $ 84.38 per barrel in London and the WTI reference quality to a high of seven years at $ 81.72 per barrel in New York.
Analyst at the German Commerzbank Carsten Fritsch estimates to the news agency Reuters that oil prices are likely to continue to rise in the short term.
The recent decision by oil exporters Opec and its allies not to increase production has put further pressure on oil supply. Last week, the Opec + group decided to stay on its previous line to increase production steadily.
The situation has not been alleviated by the fact that the U.S. Department of Energy outlined last week that it will not release oil from the country’s strategic oil reserves for the time being.
Demand for oil, in turn, has been boosted by increased economic activity due to the rapid advancement of corona vaccinations and the lifting of restrictions.
Prices are also rising due to the approach of winter and the heating season in the northern hemisphere.
Oil has also been tilted recently by rising natural gas prices, although gas price pressures were eased last week by comments from the Russian leadership on gas supplies to Europe.
Rising gas prices have attracted some gas users to switch from gas to oil.
Analyst at SEB Bank in Sweden Bjarne Schieldrop estimates in its review that high gas prices are likely to increase demand for petroleum products when consumers replace gas with oil.
He pointed out that the market has never experienced such a situation where the price of gas is twice as high as the price of oil.
In addition to the recent rise in the price of oil and gas, the price of coal and electricity has also risen to record levels due to energy shortages in Asia, Europe and the United States.
In India, some states suffer from power outages due to carbon shortages. In China, meanwhile, the country’s government has ordered mines to increase coal production.
Oil The rise in prices had a twofold effect on the stock market on Monday.
On the other hand, it raised shares of energy companies, but worries about accelerating inflation generally lowered prices in Europe.
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