Oil prices jumped to $ 85 a barrel for the first time since late 2018 as the global energy crisis soured the crude oil market.
Friday in London i future on Brent crude oil rose to 85.10 dollars a barrel, in growth of 1.3%.
Oil prices are heading towards achieving weekly gains of over 2%, in half to crescents prove of a scarce supply in the coming months, with greater expectations of a switch to petroleum products in light of the sharp rise in the prices of natural gas and coal.
Analysts pointed to a sharp decline in oil inventories in the Organization for Economic Co-operation and Development, at the lowest level since 2015. Demand rebounded with the recovery from the Covid-19 pandemic, as well as the industry’s shift away from expensive gas. and coal to power oil and diesel for energy.
“This energy crisis, in particularly in coal and gas, it benefited from oil, ”said Vivek Dar, a materials analyst prime at the Commonwealth Bank.
The International Energy Agency said Thursday that the energy crisis is expected to increase oil demand by 500,000 barrels a day. This will lead to a supply gap of around 700,000 barrels per day until the end of questyear, until the Organization of the Petroleum Exporting Countries and its allies (OPEC +) add additional supplies as planned in January.
Read More About: Business News