There is no peace for the energy bill and for inflation
the new geopolitical tensions in the Middle East I’m the straw that breaks the camel’s back for i increases in energy prices? The cost per barrel of oil returns to seven-year highs, a good sign for the world economy devastated in the last quarter of last year by variations Delta e Omicron that they brought to a new increase in Covid-19 cases with some restrictions on mobility around the globe, but without tightening the belt again lockdown: as explained by theOpec, the international organization of major crude oil producers, in fact, the demand for oil was stronger than expected in the last three months of 2021. A sign that the GDP will continue to march or at most it will only slow down its run less than expected.
Brent above 88 dollars a barrel, the highest since 2014
The problem is that the blaze of the Brent above 88 dollars per barrel (at 88.13$), a level that has not been seen on the markets since October 2014, in addition to frightening investors on the stock market because it puts pressure on company margins, it risks fueling the inflation trends that have just brought annual price growth to December at 7% (the highest level since 1982) in the United States and 5% in the Eurozone. In Italy, on the other hand, a more modest 3.9% per year, in any case much higher than the average annual figure of 2021 in which inflation reached + 1.9%.
The attacks in the Emirates by the Yemeni Houthi rebels
But what fueled the new rally on the energy markets this morning? In addition to interruptions of the offer and to sustained recovery in demand, to make the barrel splash the new tensions in the Persian Gulf that have been added tonegative equation. I Yemeni Houthi rebels yesterday attacked civilian structures in United Arab Emirates, killing three people. A Saudi-led military coalition reacted with air strikes on Sanaa, the capital of Yemen controlled by the Houthis. Washington said for its part that it “held responsible” for the attacks the Yemeni rebels, who are supported by theIran.
These events “further stimulated oil prices,” the analyst noted Ing, Warren Patterson. A few thousand kilometers up the persistent threat of a Russian invasion of Ukraine however, it continues to be the potential geopolitical risk that most frightens operators in the energy markets and beyond, due to the consequences on Moscow’s gas supplies to the Old Continent, a strategic partner of the States in the NATO block.
The Ukrainian crisis continues to support barrel prices
According to some analysts, with further disruptions to Russia’s gas supply to Europe, energy prices, and therefore crude oil, could increase further. Natural gas prices, which are still very high, are contributing to the rise in oil prices. The result is “an increase in demand for diesel and fuel oil to replace natural gas where possible,” he stressed Bjarne Schieldrop, analyst at Seb.