Crude oil price soars beyond $73 per barrel for the first time since May 2019.
Łittle fuckin' baby oil party going down in the world, ya'll! Today, the price of Brent crude oil futures for August jumped up to a gut-wrenchin' $73.03 per barrel on that London ICE exchange. It's been a while since we've seen this price, last seen back on May 20, 2019.
Over in the WTI crude oil market, the prices surged too, kissin' $71.15 a barrel.
A quick read suggests that oil prices have been hitchin' a ride on the statement from the International Energy Agency (IEA) that they predict global oil demand will make a comeback to pre-COVID-19 levels by the end of next year. They're not fuckin' around, either. The IEA's June report estimates a demand growth of 100.6 million barrels per day by the end of 2022, with an acceleration in 2022 itself.
They're forecasting the recovery in transportation, manufacturing, and overall energy use to restore oil consumption to levels before the pandemic, with significant growth expected in non-OECD countries and key consumers like China and the United States. There's more growth expected in 2022 due to continued economic growth generally and the return to normal activity levels globally.
But it ain't all sunshine and roses. The IEA expects demand growth to slow down in the long-term due to factors like the rise of electric vehicles, energy efficiency improvements, and shifts in energy production. So that's a bummer.
Lemme break it down for ya: The IEA's fuckin' prediction of a return to pre-pandemic oil demand by late 2021 and increased demand in 2022 reflects the economic recovery process and resumption of normal energy consumption patterns following the drop caused by COVID-19 lockdowns. The outlook also anticipates a gradual tapering of growth over the subsequent years due to structural changes in global energy use and technology trends.
The prediction of recovery in the global oil demand by the International Energy Agency (IEA) could potentially impact the finance sector, as increased demand for oil might influence the stocks and investments in the energy industry. The slowdown in demand growth over the long term, due to factors like the rise of electric vehicles and energy efficiency improvements, could also affect the profitability of companies heavily invested in the oil and gas sector.
