Soaring oil prices! U.S. crude oil hit the highest value in 7 years!
The price of WTI New York crude oil broke through the $80 mark, and it soared to $82.18 per barrel in intraday trading on Monday. This is the highest value reached by New York crude oil prices in seven years since October 2014.
The price of Brent crude oil fluctuated at around US$80 for several days, reaching US$84.60 at the press station, reaching a new high in the past three years, approaching the phased peak of US$86.74 in October 2018.
With the rise of international oil prices, at 24:00 on October 9, domestic refined oil prices ushered in the 19th adjustment this year. According to the National Development and Reform Commission, gasoline will be raised by 345 yuan per ton, and diesel will be raised by 330 yuan per ton.
This is the largest increase in domestic oil prices this year. On national average, 92 gasoline is increased by 0.27 yuan per liter; 95 gasoline is increased by 0.29 yuan per liter; 0 diesel is increased by 0.28 yuan per liter. According to the estimation of the 50L capacity of a general family car’s fuel tank, a full tank of 92# gasoline will cost 13.5 yuan more.
At present, the supply of fossil energy in the global market is under tight supply. European natural gas prices have reached a record level. As the "epicenter" of the United Kingdom, the wholesale price of natural gas hit a record high, leading to the suspension of many energy companies and the suspension of production in many industries.
The British National Grid reported that the UK will face a shortage of power supply this winter, and the surplus power capacity during the peak demand period may be reduced to the lowest level since 2016.
In the United States, natural gas prices have reached their highest value in the past seven years, and prices may continue to rise after the peak heating period in winter.
Due to soaring gas prices, the market is worried that high natural gas prices will push up oil consumption and stimulate oil prices to rise. With the effective control of the new crown epidemic, many countries in Europe and the United States have cancelled or relaxed travel controls, and the demand for oil in the transportation sector has increased significantly. The speed of economic recovery on a global scale has exceeded expectations, which has promoted the growth of demand for crude oil.
From the supply side, in the face of the recent upward trend in oil prices and energy supply shortages, the market believes that OPEC + related countries will increase production. However, at the OPEC and non-OPEC oil-producing countries meeting held on October 4, the participating countries decided to continue the implementation of the previously agreed production increase plan, that is, to maintain a low output increase rate of 400,000 barrels per day. OPEC's decision not to take significant measures to increase production has pushed up oil prices.
Goldman Sachs raised its oil price target at the end of the year to US$90, while Bank of America predicted that as the energy crisis has spread to the world, oil prices may reach US$100 per barrel before the end of the year. Analysts believe that the OPEC meeting in the next two months will be critical.