Brent crude futures rose above $85 a barrel for the first time since October 2018, another milestone in soaring prices amid global energy shortages.
Crude oil futures prices have also risen in recent weeks as natural gas prices hit a record. The global gas crisis is spreading to the oil market, with oil use rising by an average of about 500000 barrels a day over the next six months, the International Energy Agency (IEA) said on Thursday. The Organization of the Petroleum Exporting countries and its allies have only slightly relaxed production reduction restrictions, a phenomenon that is bound to exacerbate the gap in oil inventories.
Soaring commodity prices from oil to natural gas to coal have pushed up global inflation, posing a challenge to policy makers. While incomes in energy-producing countries will rise, economies that are recovering from the outbreak are likely to slow. Bank of America Corporation even believes that oil prices may hit $100 a barrel.
Brent crude futures rose 1.3 per cent to $85.07 a barrel at 08:53 London time.