Crude Oil Prices Pass $ 80 For First Time In 8 Years

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West Texas Intermediate broke above $ 80 a barrel for the first time in seven years.

AFP via Getty Images

Global oil prices continued to rise on Monday, adding to fears that the global recovery may turn out to be less vigorous than expected.

U.S. crude oil prices topped $ 80 for the first time in seven years, with West Texas Intermediate up 2.5% to $ 81.3 a barrel in early European trading. Brent crude, the international benchmark, rose 2% to $ 84 a barrel.

Natural gas prices, however, were still trading significantly from last week’s all-time highs, with a Dutch benchmark of $ 90 per megawatt hour after hitting highs of around € 160 ($ 185) last week. Prices fell on Friday after Russian President Vladimir Putin said state-owned Gazprom would increase supplies to Europe to help ease the continent’s current crisis.

In the latest sign that semiconductor shortages, production bottlenecks and the effects of the ongoing Covid-19 pandemic will hamper growth, Goldman Sachs lowered its forecast for the U.S. economy for 2021 on Sunday. and 2022.

The reduction in government budget support by the end of the year and “a later recovery in consumer spending” are the “two challenges” to medium-term growth, the bank’s analysts wrote in a note. to customers.

The gross domestic product of the US economy is now expected to grow at a rate of 5.6% this year and 4% in 2022, they said. That’s down from the previous forecast of 5.7% and 4.4%, respectively.

Last month, the Organization for Economic Co-operation and Development lowered its growth forecast for the United States to 6% for this year, with the economy expected to grow 3.9% in 2022.

Write to Pierre Briançon at [email protected]

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