I jumped Oil prices Yesterday, it reached its highest level in several years by the growing recovery in global demand, which contributes to the shortage of electricity and gas in China’s major economies.
The CNBC Arabic website reported that international standard Brent crude oil deals closed at $ 83.65 a barrel, nearing the close of the trading session, at $ 1.26 or 1.5 per cent, reaching $ 84.60 during the session, the highest level since October 2018.
Also the US benchmark West Texas Intermediate crude deals ended at $ 1.17 or 1.5 percent at $ 80.52, touching its highest level since 2014 at $ 82.18.
The pace of economic recovery from the epidemic boosted demand for energy at a time when oil production was sluggish due to cuts by producing countries during epidemics, oil companies’ focus on revenue and pressure from city governments to clean energy.
A U.S. executive said today that the White House was adhering to the call to “do more” for producing countries and was closely monitoring oil and gasoline prices.
OPEC + Alliance is reluctant to increase products despite rising prices.
In July, the group agreed to increase production to 400,000 barrels per day to recover 5.8 million barrels per day from the 2020 contract.
Electricity prices have hit record highs over the past few weeks due to widespread power shortages in Asia, Europe and the United States.
Higher natural gas prices have encouraged power generation companies to switch to oil.
Analysts estimate that switching from natural gas to oil will increase crude demand by 250,000 to 750,000 barrels a day.
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