Global oil prices hit the highest on Monday

Rigmen Doing Their Thing On A Total Operated Platform Oil File photo of workers on a oil rig

Mon, 18 Oct 2021 Source: www.ghanaweb.com

• Global prices of oil have hit the highest due to supply chain disruptions

• Brent crude oil rose 63 cents, or 0.7%, to US$85.49 a barrel on Monday

• Petrol and diesel are selling at GH¢6.80 at some pumps in Ghana as of October 16

Prices of oil on the global market have hit their highest level in years on Monday, October 18, 2021.

According to Reuters, the peak is attributed to supply chain disruptions from the coronavirus pandemic associated with power generators turning away from expensive gas and coal to fuel oil and diesel.

“Brent crude oil futures rose 63 cents, or 0.7%, to US$85.49 a barrel by 0645 GMT, after hitting a session high of $86.04, the highest price since October 2018.”

“U.S. West Texas Intermediate (WTI) crude futures climbed 95 cents, or 1.2%, to US$83.23 a barrel, after hitting a session high of $83.73, highest since October 2014,” the portal wrote.

Oil market analyst, Edward Moya from ANZ bank told Reuters, “Easing restrictions around the world are likely to help the recovery in fuel consumption and that gas-to-oil switching for power generation alone could boost demand by as much as 450,000 barrels per day in the fourth quarter.”

Meanwhile, on the local market in Ghana, prices of petroleum have spiked as a result of the second pricing window of October which began on October 16, 2021, pushing fuel prices to increase significantly.

Already, some pumps in the country have over the weekend adjusted prices of petroleum products to as much as GH¢6.80 for a litre of petrol and diesel.

Prior to this, President Nana Addo Dankwa Akufo-Addo through the NPA on October 11, 2021 approved the removal of the Price Stabilization and Recovery Levies (PRSL) on petrol, diesel, and LPG for two months.

The move according to the government is to cushion consumers from the impacts of the price buildup of petroleum products on the international oil market.

On Friday, October 15, 2021, Brent Crude was selling as high as US$85 a barrel. The commodity was earlier US$77 a barrel at the end of September this year.

Source: www.ghanaweb.com
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