Currently, US oil prices ended above US$ 80 or around Rp 1.1 million per barrel on Monday (11/10) yesterday. This oil price is the highest in almost seven years.
Launching from CNN, Tuesday (12/10/2021), the price of crude oil has risen 1.5% to the level of US$ 80.52 or around Rp. 1.15 million (when calculated at the exchange rate of Rp. 14,300/US dollar). The last time crude oil prices closed above US$80 was on October 31, 2014.
The increase in crude oil prices will certainly affect the price of gasoline in the United States. If the price of gasoline goes up, it will only exacerbate rising inflation and put pressure on everyone in America’s budget.
The current energy crisis has not only made the price of crude oil rise, the price of natural gas has also skyrocketed a lot, especially in Europe and Asia.
In Europe, natural gas prices have risen from below US$ 2 per million BTU or around Rp 28,600 last year, to US$ 55 or around Rp 786,500 this fall.
Whereas in Europe, natural gas is often used as a source of electricity generation. Therefore, if this continues, there will certainly be many citizens in Europe who will experience a shortage of electricity supply.
It doesn’t stop there, currently the price of coal in China has also increased quite drastically. Coal prices in China have reached record highs after floods hit northern China, which closed dozens of coal mines.
Whereas in China itself, coal is the main source used for heating, power generation, and steelmaking. Hence China is now grappling with electricity shortages, prompting the government to ration electricity during peak hours and some regions to suspend production.
“We may be just one ‘hurricane’ away from the next macro (economic) ‘hurricane’,” Bank of America strategists wrote in a recent note to clients.