Oil Prices May Explode!
Brent Oil has broken its decade long trend line, where it has breached its resistance. On Monday, the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, chose to stay with a plan to increase output gradually and not boost it further as the U.S. and other consumer nations have been urging. With the upcoming winter, we anticipate the oil prices to continue it bullish momentum. The hike in the oil price can be attributed to shift in the fundamentals of the economy. Where the coal accompanied with other petroleum commodities are continuing to make new highs. The outburst of prices can be attributed to the shift in the global dynamics where we are observing energy crunch due to instability in the climate. The Global economies such as China are desperately searching for coal, however due to its limited supply and increasing demand coal has witnessed record high. Meanwhile Natural gas, which has been used as a source of energy by Europe has also witnessed records. The natural gas price hike is stemming from the hydel energy crises addressed by the Boris Johnson in speech ahead of the Climate Change summit 2021. The unfolding of energy crises accompanied with the threat of the winter season has thrown petroleum products in a frenzy, and we anticipate the oil prices to go bull in the longer term while it is subject to taking a pullback in the shorter term.