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Oil Hits Three-Year High; Crosses $86 a Barrel

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Due to the tight supply and global energy crunch, oil hit a three-year high, crossing $86 per barrel. According to the U.S. Energy Information Administration, crude and fuel inventories have tightened and crude inventories at the Cushing storage hub have seen a three-year low.

Crude has seen a high of $86.10. It is recorded to be the highest since October 2018; however, it pulled back by $0.92, 1.1% to $84.90 by 1155 GMT. Louise Dickson of Rystad Energy said, “Traders who had set $86 as their selling threshold took the opportunity to already pocket some profit. Oil prices took a dive as a result.”

The price of oil also depends upon the price of coal natural gas. Coal dropped by 11% in China that helped the extend losses this week when Beijing indicated that it might cool the market.

Is the sharp rise in global oil prices a bad omen for the people of Pakistan, who are already crushed by high inflation?

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