Showing posts from November 20, 2022

Oil price: mild European temperatures keep the price of fossil fuels low

  European gas prices that have been steadily rising in the last two weeks played a definite role in stopping the crude oil from plummeting due to gloomy economic developments across the world. With the unseasonably mild temperatures in the continent, mercury rising into double digits on many days, the demand for LNG, liquified natural gas, has not gone exponential yet, despite the concerns to the contrary; in addition, the countries in the EU managed to fill up their gas reserves from myriads of sources and consumers in the bloc heeded the calls from the leaders to cut down on the use of gas in their households. The temperatures in some parts of Europe are so unusually high that it is called the onset of the 'second spring', as the conditions have resulted in plants in bloom again! In Wales, for instance, the highest reported temperature in November is 16 0 C. Since the pattern of warmer temperatures has been a crucial factor in keeping the price of LNG at the current levels,

Falling oil price continues in step with feared economic gloom

  The price of crude oil tumbled further when the markets opened for business on Monday, reflecting the widespread anxieties over the health of the global economy, exacerbated by the rising energy costs. As of 11:45 GMT, the prices of WTI, Brent and LNG, liquified natural gas, were at $79.76, $87.34 and $6.26 respectively; the fall of crude oil price that we witnessed on Thursday, last week, continued unabated on Monday morning with one notable trend - the rate of fall; it was fairly steep, indeed. With the UK already in recession - and bracing itself for the scenario of shrinking further - the contagion could move faster across the continent and even further in the coming months, according to the seasoned analysts. As far as Europe is concerned, the gas reserves are almost full and the fact that the temperatures remaining relatively high in the fall appears to have helped the governments in the EU weather the storm - for now. If the temperatures, however, come down in the next three m

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