Oil rises close to multi-year high on energy crunch fears

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Oil rose towards $84 a barrel on Tuesday, within sight of a three-year high, supported by a rebound in global demand that is contributing to energy shortages in big economies such as China.

With demand growing as economies recover from pandemic lows, the Organization of the Petroleum Exporting Countries and allied producers, or OPEC+, is sticking to plans to gradually bring back output, rather than quickly boost supply.

Brent crude was up 24 cents at $83.89 a barrel. On Monday it reached $84.60, the highest since October 2018.

Also, U.S. oil gained 21 cents to $80.73 and on Monday hit $82.18, the highest since late 2014.

According to OANDA, the lack of much change rise in prices on Tuesday may be due to the market looking overbought based on short-term technical indicators such as the relative strength index.

Meanwhile, Power prices have surged to record highs in recent weeks, driven by widespread energy shortages in Asia, Europe and the United States.

 



Abisola Adebayo is a Reporter/Presenter/Social Media Manager for Tv360Nigeria. She is a first class graduate of the department of Mass Communication at Fountain University, Osogbo. Abisola is currently running her Masters Degree at the University of Lagos. The Social Media savvy young lady is ambitious and driven, likes trying new things and sets new goals for herself. Always looking for an opportunity to do better and achieve greatness.


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