EA global energy crisis could fuel inflation and, according to the International Energy Agency (IEA), slow the global recovery from the corona pandemic. “Record prices for coal and gas, as well as recurring outages, are driving the power sector and energy-intensive industries to turn to oil to keep lights on and keep operations going,” the agency said in its monthly oil report. As a result, world oil demand is expected to recover to pre-pandemic levels in the coming year.
The IEA expects the global energy crisis to boost oil demand by half a million barrels a day (bpd). Rising energy prices also increased inflationary pressures, which, combined with power outages, could slow the economic recovery. The agency estimates that the major oil producing countries of the Opec + with the crude oil production in the fourth quarter will remain about 700,000 barrels a day below the expected demand.
Oil prices are heading for multi-year highs
Meanwhile, oil prices rose back towards their multi-year highs from the beginning of the week on Thursday. Market observers referred to statements by the International Energy Agency. At times, a barrel (159 liters) of the North Sea variety Brent cost 84.23 US dollars. That was $ 1.05 more than the day before. The price of a barrel of the American West Texas Intermediate (WTI) rose 90 cents to $ 81.34.
On Monday, the price of Brent rose to $ 84.60, the highest level in three years. The US oil price had reached a seven-year high at a good $ 82. The development is triggered by the global shortage of energy and a simultaneous increase in demand as a result of the economic recovery from the Corona slump.