Showing posts from August 14, 2022

High gas prices offer metaphorical parachute to the falling oil prices

The price of crude oil that is currently at the mercy of the combination of high gas prices, never-ending global political uncertainties and the fear of recession, took yet another dive, when major markets opened on Monday. As of 13:30 GMT, the prices of WTI and Brent recorded $87.31 and $93.15 respectively. The price of LNG, liquified natural gas, was $8.48, almost doubled from what it was a year ago. If the fears of the recession is the dominant factor in bringing down the price of crude oil, reflecting the poor demand, the price of gas potentially can trigger off the inhibiting effect.  In this context, it is highly unlikely that we will witness yet another oil price crash in the coming weeks. High gas prices have made oil more attractive for the industrialists to bring down rising energy costs - as the last resort. The IEA, International Energy Agency, and the OPEC+ ,  meanwhile,  are diverging with their immediate oil demand predictions; the former estimates a substantial increase

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