World oil prices soar through the sky in 7 years, Chinese coal is also skyrocketing. OPEC takes advantage

World oil prices skyrocket – CNN reports the situation of rising world oil prices that open this week. World crude oil prices surged past $80 a barrel to close at $80.52 for the first time in seven years since Oct. 31, 2014.

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in April last year Oil prices plummeted to $40 a barrel. Due to the covid situation, travel has stopped both in the sky and on the ground. The economy is starting to recover. The demand for oil returns But the amount of oil production did not increase accordingly. until the spinning price rises

World oil prices skyrocket

FILE – In this Wednesday, April 8, 2020 file photo, the sun sets behind an idle pump jack near Karnes City, USA. (AP Photo/Eric Gay, File)

Americans were shocked by the situation. When the price of gasoline It hit a record $3.27 per gallon. On Monday, Oct. 10, up 7 cents from the previous week. And it almost doubled from $1.77 in April 2020.

The high price of oil is now due to inflation. until affecting the budget allocated to American families and the political destiny of President Joe Biden.

World oil prices skyrocket

FILE PHOTO: A gas pump is seen hanging from the ceiling at a petrol station in Seoul, South Korea, June 27, 2011. REUTERS/Jo Yong-Hak/File Photo

And the unfortunate thing is that the price of oil will still be higher.

Natural gas prices in Europe and Asia are also skyrocketing. because power plants and factories Turning to cheaper power generation that is crude oil

A tanker is refilled with crude oil at the BP oil refinery in Hamble, near Southampton, southern England on October 4, 2021. (Photo by Adrian DENNIS / AFP)

Will the price hit 100 dollars?

Citigroup estimates that Brent oil prices It should hit $85 a barrel in the fourth quarter. and until then The price of crude oil will hit $90 a barrel.

Wall Street Bank believes that the winter and the switching on of factories will cause oil prices to skyrocket especially Europe If it’s a very cold winter There is a chance that there will be a shortage of gas and oil by February next year.

The platforms Ellen and Elly offshore near Long Beach, Calif., (Bureau of Safety and Environmental Enforcement via AP)

Bank of America also warned that In winter, oil demand will increase to 500,000 barrels a day, so Brent prices could hit $100. Gas prices are as high as with crude oil at the Brent market

“We may have just encountered a single hurricane from a massive hurricane,” the Bank of America analysis said.

China’s coal prices hit record highs.

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It was not only natural gas that played a role during this period, it was noticed that China’s coal prices were also record high. During the flood disaster in northern China until the closure of dozens of mines

While coal is still the main source of energy in China. use for heating generate electricity to steel production Now, China is facing an energy shortage problem.

FILE PHOTO: A coal-burning power plant can be seen behind a factory in the city of Baotou, in China’s Inner Mongolia Autonomous Region, October 31, 2010. REUTERS/David Gray/File Photo

Patrick De Haan, head of analytics at Buddy Gas, said there was no sign of a drop in gas prices for now. The market is just starting to feel the price surge. and will continue to rush

OPEC takes the reins

when demand is high It’s normal that the supply doesn’t move.

U.S. oil production is now recovering sharply from the coronavirus situation. even though the price has skyrocketed That’s because oil producers don’t want the oil oversupply to happen again. It also aims to return cash to shareholders who have lost a lot of money over the past decade.

OPEC headquarters in Vienna, Austria on November 30, 2016. AFP PHOTO / JOE KLAMAR

Therefore, despite the US government’s calls for OPEC and its allies to speed up production, But OPEC has moved little by little. Let the price of oil continue to rise

Even if OPEC is a producer that used to be heartbroken. But now it’s back in power in the oil market.

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