The price of crude oil in the international markets
has been rising this week, leaving the fluctuating uncertainties that we saw in
the past few weeks behind.
As of 16:30 GMT, the price of WTI and Brent stood at
$75.36 and $79.49 respectively.
It’s now, more or less, determined by the two basic
factors of economics – the demand and supply.
Since the Delta variant across the globe on the
wane, the global economies are springing back into action like an animal coming
out of hibernation; the momentum is increasing much faster than analyst thought
it would.
The crude oil output by the OPEC+ and other global
players in the realm cannot keep up with the rising demand; the major
importers, in order to address the combination of supply deficit and the rise
in crude oil price, are tapping their strategic oil reserves – perhaps, as the
last resort.
In Europe, meanwhile, the gas crisis shows no sign
of dying down. Fuelled by the petty politics, the situation can only get worse,
before getting better. It adds further pressure on the crude oil sector, as the
high gas price forces industrialists to turn to oil to address their urgent
needs.
Amidst the global energy crisis, all eyes are on the
OPEC+ meeting, scheduled on October 4. The only magic wand they can wag,
however, is reaching an agreement with the members to increase the output in
order to silent the voices that yearn for more oil.
In this context, the reaction of the Biden
administration before the forthcoming OPEC+ meeting is something that analysts
watch keenly, because the former usually exerts pressure on the cartel at the
eleventh hour!
