Oil price has broken a multi-year record

Oil prices hit new highs

The energy crisis in the world has provoked a record rise in oil prices. In particular, US WTI hit its highest price since 2014.

During trading on Monday, October 11, the price of a barrel of Brent crude rose 2% to $ 84.01. It reached such a mark for the first time since October 2018. American WTI crude rose $ 1.62 to $ 81.3, the highest price since 2014, reports Reuters.

It is noted that Brent oil has been steadily rising in price for the fifth consecutive week, WTI – the seventh, the agency notes.

This rise in prices is associated with the rise in prices for natural gas and coal. And also with the resumption of global economic activity caused by the successful vaccination campaign of the population in developed countries and, as a result, the lifting of quarantine restrictions for business.

The dynamics of oil prices are also influenced by expectations of a deepening global energy crisis.

For example, in India, power outages began due to a shortage of coal at power plants. The Chinese government has issued an order to coal mining companies to increase production due to rising electricity prices.

Last week, the US Department of Energy refused to use strategic oil reserves to reduce soaring gasoline prices, another factor driving the rise in oil prices, the agency added.

Also not expected to increase oil production in OPEC + countries that have decided to keep production at the current level.

High oil prices are expected to persist for at least three more months.

Previously analysts at Goldman Sachs Brent price forecast increased at the end of the year to $ 90 per barrel from $ 80 per barrel.

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