Oil prices hit their highest level in years yesterday.
A natural gas and coal shortage, relaxing Covid restrictions and power generation opting for oil over gas is driving demand. ANZ bank analysts says, “easing restrictions around the world are likely to help the recovery in fuel consumption.”
He goes on to say, the switch from gas to oil in power generation could see demand for oil rise to 45,000 barrels per day. The Organisation of Petroleum Countries says oil will remain number one despite push for greener alternatives.
This comes weeks before the UN climate change conference meeting is set to take place in Glasgow.