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OIL AND GAS

The crude market has been hit by the sudden rise in oil prices as the gas crunch continues

The crude market has been hit by the sudden rise in oil prices as the gas crunch continues
The Siliconreview
29 September, 2021

Demand for fuel has recovered faster than expected due to the rise in Delta variant Covid cases

Oil prices in the US reached a new high recently, and the numbers are greater than what it was three years ago. The main reason behind the hike is the increased demand from consumers, and the global economy is also recovering, boosting the demand. As of now, a barrel costs around $79.22. The new price is 50 percent more than what it was a year ago and 9 percent more than what it was at the start of this month.

As the governments are lifting the Covid-induced lockdowns, consumers and businesses have also increased their usage of everything from diesel to airplane fuel. One of the most influential banks ever, Goldman Sachs, has stated that the forecast Brent might soon hit $90 per barrel. The current demand level for the global oil supply is still in deficit, and it is more than what was anticipated. Demand for fuel has recovered faster than expected due to the rise in Delta variant Covid cases. However, the global supply is very slow and trying to meet the growing demands of the consumers. Goldman Sachs further added that the winter demand has skewed to the upside, and the shortage of gas will only continue to drastically affect the industry.