On Wednesday, the price of crude oil on the stock exchange rose to $ 90. a barrel for the first time in seven years. Behind the rise in prices are concerns about limited supply and growing tensions in Europe due to the threat of a Russian invasion of Ukraine – writes the Financial Times.
Brent oil price, which is an international benchmark, rose by more than 2 percent on Wednesday. up to $ 90.42 a barrel. This is the highest level since 2014, when the price exceeded $ 115.
Some analysts predict that the price of Brent crude oil will continue to rise and this year it will exceed $ 100. a barrel. Goldman Sachs forecasts Brent to hit $ 100. a barrel in the third quarter and an average of $ 96. per barrel in 2022
A bill introducing in Poland the so-called anti-inflationary shield 2.0 assumes a temporary reduction in VAT on fuels from 23 percent. up to 8 percent Analysts estimate that although this change may – as announced by the prime minister – lower gasoline prices 95 to around £ 5 per liter, however if oil prices continue to rise, this effect will prove to be short-lived.
Tensions in Ukraine are driving up oil prices
A possible Russian attack on Ukraine is to be met with severe sanctions on the part of the European Union. As a senior EU official anonymously confirmed to journalists, all options are on the table, including hitting the energy sector and the banking system.
The second issue is problems with the supply of the raw material. OPEC + members will meet on February 2 to discuss increasing production by another 400,000. barrels per day in March. The United States and other big oil consumers previously urged OPEC + to increase production faster, but even at the current pace, the group has fallen short of the target, fueling concerns about limited supply. According to the International Energy Agency, in December, the OPEC + countries increased production by only 250,000. barrels per day, which means the group is producing significantly less than previously planned – writes FT.