Portal partners
"Business Puls": OPEC pumps fuel prices. It hasn't been this expensive in years.
Author:Mariusz Dasiewicz
Galloping oil prices combined with weak gold have made Poland the most expensive gas in almost eight years. It may be even more expensive, because the dispute in the bosom of the oil cartel threatens with further increases – indicated on Thursday "Business Puls".
"PB" points out that "on Tuesday Brent's barrel of oil on the London stock exchange was already paid nearly $78". "This is the most since October 2018 and more than twice as many as eight months ago. Only since the end of May, dollar black gold has risen by about 20%."
It was added that "the situation worsens the relative power of the dollar combined with the weakness of the gold". "The American currency is currently valued at about PLN 3.80, while it was nearly 20 cents cheaper a month ago" was recalled.
It was pointed out that "as a result, Brent's oil price is slowly approaching PLN 300 per barrel". "For the last time, this level was permanently exceeded between 2011 and 14, when oil in global markets cost over USD 100 per barrel," says "PB".
"Business Puls" estimates that "the oil market situation has remained tense for many months". "The world's economy is rapidly returning to pre-coronacrisis activity levels. This is reflected in the rapid increase in demand for oil. Even before the holiday season in Europe and North America, global oil consumption was over 96 million barrels a day (bpd) — is reported by the U.S. Department of Energy (EIA). According to the same source, the world's demand for oil will return to pre-covid levels of 101-102 million barrels a day in the autumn," writes the newspaper.
He adds that "at the same time, producers are not willing to increase supply". "American oilers supply around 11 million bpd, just like the year before. By comparison, in March 2020 oil production in the US reached a record of 13 million bpd. They don't want to do OPEC countries, either. The oil cartel has been providing just over 30 million bpd since November, while demand continues to grow. As a result, for a year now, more oil has been consumed in the world than it produces, leading to the depletion of strategic stocks of raw material," explains "PB".
"In recent days things have become even more complicated. The OPEC countries have not reached an agreement on mining limits. This means that the current restrictions will remain in force. The planned increase in deliveries by 400,000 bpd each month, starting in August and ending in December, was torpedoed by a dispute between Saudi Arabia and the United Arab Emirates. As a result, there has been an even greater shortage of raw material in the coming months, resulting in an even deeper reduction of stocks" - stressed.
Source: PAP
