Crude hits $ 84 a barrel for the first time in three years as the world’s energy crisis deepens
Oil prices topped $ 84 a barrel for the first time in three years as the energy crisis in major economies escalated.
Brent crude hit $ 84.60 in London – a level not seen since October 2018.
The US benchmark, West Texas Intermediate, was trading above $ 81 per barrel, its highest level since late 2014.
Oil surge: Brent crude oil price hit $ 84.60 in London yesterday – a level not seen since October 2018
“Oil prices are expected to continue to rise in the near term,” said Carsten Fritsch, analyst at German bank Commerzbank.
This means bad news for motorists, as oil drives up the price of gasoline and diesel.
Oil prices have risen as more and more vaccinated populations have emerged from coronavirus lockdowns, supporting a resumption of economic activity.
The pace of economic recovery combined with cold weather has increased demand for energy.
Coal, gas and electricity prices have also reached record highs in recent weeks, due to widespread energy shortages in Asia, Europe and the United States.
In India, some states are experiencing power outages due to coal shortages.
The Chinese government, meanwhile, has ordered miners to increase coal production as electricity prices rise.