The prices of oil rose to eighty dollars per barrel due to an unexpected setback in the global power dominion, which unsettled the market and decelerated the restoration of oil output by the Organization of Petroleum Exporting Countries (OPEC+).
The crude oil futures contracts of West Texas Intermediate Futures have surged by 2 percent in the Asian market. This happened after the limit of the psychological price was crossed on Friday- a phenomenon that was preceded only in November 2014. The reason is attributed to the imminent onset of the harsh winter season in the Northern hemisphere. Consequently, the existing stocks of these fossil fuels have depleted to the extent that the population is forced to seek out alternative fossil fuels like diesel and kerosene. Furthermore, there is no foreseeable decline in coal and natural gas prices, but only a steady rise.
In the middle of August 2021, the highest limit for the price of American crude oil had increased by thirty percent due to the exponential increase in demand for energy. According to an estimation provided by Saudi Aramco, the lack of availability of natural gas resources has led to an overburdening demand on oil supplies, requiring approximately 500000 barrels every day. Jeff Currie, who acts as the global leader in commodities research for Goldman Sachs, predicted an even higher demand, asserting that the price of oil per barrel might be as high as 90 dollars. The situation has become even more complicated, with the US Energy department showing an apparent lack of interest in utilizing their country’s oil reserves. Furthermore, the OPEC+ had decided last week that it would limit its oil supplies to 400000 barrels per day, which had only increased the demand, and thereby, the price rise.