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Oil prices around the world have risen for nearly seven years

Oil prices went up seven-year-old on Monday, threatening global inflation because of declining availability and fear of downtime leading to a slowdown.

Brent, the global brand, rose more than 10 percent in the first two weeks of the year to $ 86.71 a barrel, more than last October, to reach levels that have not been seen since 2014 when oil prices rose to $ 115.

U.S. oil prices at West Texas Intermediate have risen more than 12 percent from the beginning of the year to a record high of $ 84.78, just over a year ago. Some analysts predict that idle benchmarks will sell for more than $ 100 a barrel this year unless a significant increase is needed.

“This is a very dangerous time in the oil market,” said Helima Croft, chief of global operations at RBC Capital Markets. “We’re in the red oil field [US] President [Joe] Biden who plans to ask OPEC for more barrels. ”

U.S. consumer prices rose 7 percent year-on-year in December, the fastest since 1982, after a six-month meeting in electronics markets that raised the cost of living worldwide.

The White House has called on oil companies around the world to increase their oil production as soon as possible to help drive inflation. But OPEC and its allies have maintained order agreed in July last year to replace cuttings at the beginning of the epidemic slowly, with 400,000 barrels per day each month.

The move has helped keep oil prices up since August, as well as a speedy recovery after the spread of the Omicron coronavirus in November led to a sell-off.

But not all members of the Opec + group – which includes manufacturers such as Saudi Arabia and Iraq and allied countries such as Russia and Kazakhstan – have been able to achieve their monthly goals, meaning the cartel has been gradually increasing its output compared to its monthly demands. . , the researchers said.

In Europe – where natural gas is sold two levels due to high demand, limited storage and durable materials from Russia – fear over the possibility Russian invasion of Ukraine increases uncertainty in electronic markets.

“While there is no food crisis, [those] arguments are going to push [oil] the price is $ 100 a barrel, ”Croft said.

Bjarne Schiedrop, an economist at Sweden’s SEB financial group, said it could be up to more powerful manufacturers, such as Saudi Arabia, to take action if they want to prevent prices from rising sharply.

“The suffering from Angola, Nigeria and Libya, combined with the high cost of natural gas and the global diesel market, is a major factor in the downturn,” he said.

“Based on this, we can see the opposite of them [Opec+] Members are left powerless even if it means the demise of their hats to prevent the oil price from popping $ 100 a barrel. “


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