Hyperinflation Could Send Oil Prices Above $180
Last year, shortly after the World Health Organization (WHO) declared Covid-19 a global pandemic, governments everywhere unveiled massive monetary and fiscal stimuli (over $15T globally) in a bid to forestall the economic fallout of the pandemic. The U.S. federal government stepped in with a broad array of measures, pumping about $4 trillion into the economy; sending cash directly to households, boosting unemployment benefits, and creating several new grant and loan programs for businesses.
Oil tops $79 for the first time since 2014 after OPEC rejects calls for more output
Oil prices on Tuesday climbed to their highest level in nearly seven years after OPEC and its allies declined to significantly ramp up production. US crude jumped another 1.4% to settle at $78.93 a barrel. For much of the day, it was trading above $79 a barrel, a level unseen since November 10, 2014. The 63% spike in oil prices so far this year is amplifying inflationary pressures weighing on the world economy.
Investors See Natural-Gas Crunch Spilling Into Crude Market, Lifting Oil Prices
A shortfall in global energy supplies is spilling into crude markets and could add momentum to this year’s rally in oil prices, investors say. Even though it ended Tuesday’s session lower, Brent crude, the global gauge of oil prices, is near its highest level in three years and traded above $80 a barrel early in the day. It closed down 0.6% at $79.09 as rising government-bond yields prompted a broad retreat from stocks and commodities but is still up more than 50% in 2021.
Energy Prices Spike as Producers Worry Over Pandemic and Climate
Americans are spending a dollar more for a gallon of gasoline than they were a year ago. Natural gas prices have shot up more than 150 percent over the same time, threatening to raise prices of food, chemicals, plastic goods and heat this winter. The energy system is suddenly in crisis around the world as the cost of oil, natural gas and coal has climbed rapidly in recent months. In China, Britain and elsewhere, fuel shortages and panic buying have led to blackouts and long lines at filling stations.