Oil prices have witnessed surge again on Monday, extending recent gains in energy demand all over the world. Last year, due to unexpected Covid-19 pandemic, all the economic activities were halted in developed as well as developing countries. Energy consumption recorded quite less in year 2020 with economic crisis leading decline in GDP by major economies in the world. In order to revive the economy, world resumed economic activities.
Energy crisis is sweeping the world amid supply restraint from the major producers in energy sector and no economies are showing sign of ease for energy crunch. Therefore, oil prices are rising due to growing for fuels as the countries try to revive economy and recover from the Covid-19 pandemic.
Widespread of vaccination drive is one of the major reasons oil prices have shown increment as many vaccinated populations have received nod to resume economic activities. This leads to push crude market higher by surging coal and gas demand, making oil more attractive as a fuel for power generation. Crude oil hit seven-year high amid businesses all over the world resumed operations.
United States’ crude oil production companies witnessed rise for a second time in last week as more production returned after extended shut-ins owing to hurricanes.
Brent crude was up USD 1.20 cents with $83.59 abarrel by 0414 GMT, after last week surge of nearly 4%.
In India, some states are experiencing blackout due to coal shortage. Tata Power Delhi Distribution Ltd (DDL) told costumers to use electricity wisely. While, China government has ordered miners to speed up the coal production as the energy demand surges.
Intergovernmental Organization for oil and supply, OPEC+ (Organization of the Petroleum Exporting Countries) and allies, last week announced to gradually add oil in the market by keeping oil policy unchanged.