Global economic recovery sparks potential price surge in oil, gas & coal markets
Time:Mon, 15 Jul 2024 09:25:14 +0800
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Global economic recovery and rising energy demands are setting the stage for potential price increases across major commodities like crude oil, natural gas, and coal. Brent crude oil, for instance, started the year at US$75 per barrel, peaked at over US$90 in April, dipped to US$75 in June, and recently climbed back to $86.97 by July 5th, marking a 16% increase since January.
Factors such as improving global economic fundamentals and geopolitical tensions, particularly in the Middle East and Eastern Europe, have contributed to oil price volatility. Despite initial market panic, recent de-escalation efforts have eased fears and stabilized prices, bolstered further by expectations of Federal Reserve interest rate cuts.
Looking ahead, potential Fed actions, geopolitical tensions, and OPEC+ production cuts could continue pushing oil prices upward. Meanwhile, natural gas prices in Europe remained low due to decreased heating demand in the first half of the year, but upcoming winter demand spikes and limited inventories may drive prices higher. Similarly, coal prices are trending upwards amid increased demand for electricity and heating.
