Oil Price Rise Set To Surpass 100, Europe Faces Electricity Crisis, Consider Banning Cryptocurrency

The large disparity in supply and demand has led to an increase in the price of crude oil.

The oil industry is booming lately! Brent gas prices rose and reached $90 a barrel. Analysts believe that the crude oil supply and demand disparity is still underestimated, this year oil supply will fall on rising demand and oil price will be good up to $100 a barrel .

Since the end of 2011, the United States has been a major source of crude oil, and out of 7.66 million barrels of global production per day, 5.95 million barrels come from the United States. OPEC, the world's largest crude oil producer, has adjusted production to balance out differences between global oil demand and oil prices, and since late 2011, modern crude oil has been cut by 2. 62 million barrels.

As long as OPEC-Russia cooperation continues, world oil prices cannot exceed demand and oil prices will not fall, which is very important for the oil balance of developed countries. race.

OPEC and Russia don't want continued growth to affect oil prices, and US oil production has grown more slowly. Global crude oil production is expected to rise from 98.27 million barrels per day last year to 122 million barrels per day this year.

According to the U.S. Energy Information Administration (EIA), global oil demand is expected to increase this year by just 1 million barrels per day, from 110 million barrels per day late last year to 102 million barrels per day by the end of last year. the end of the year. year. .

However, judging by estimates of global crude oil demand forecasts, oil demand is expected to return to 105 million barrels per day, up 3 million barrels per day, by the end of this year. , as long as it is a temporary impact of the spread. . missing. Still lower than US Energy Information Administration (EIA) estimates, there is still a big difference in the oil industry. This is also an important reason why oil prices continue to rise.

The energy crisis in Europe

As oil prices rise, Europe faces an electricity crisis.

Electricity prices in Europe have reached record highs, driving inflation and increasing the value of millions of households and businesses, from Germany to France and the UK.

Electricity consumption discrepancies and rising prices have kept Europe's continuous energy from stagnating. Indeed, low temperatures reduce the capacity to generate electricity for many years.

In Europe, the cost of electricity production in Germany amounted to 184.30 euros per megawatt hour, while in France it reached 211 euros. Carbon prices soared to €88.72 a tonne as electricity consumption increased, and traders opted to bid over €100.

Rising fuel and electricity prices have pushed up prices for consumers who have already suffered from higher food and transportation prices. Inflation in the UK is the highest for 30 years.

Representatives of Europe, from Athens to Oslo, are facing elections this year, taking measures such as eliminating VAT on utility bills or helping the poorest.

However, this measure is marginal compared to oil prices in Europe, which rose 330% last year. Last year, oil prices in Europe were just starting to play out as wholesale prices were overtaken by consumers.

Elections have always recognized that the acquisition of power was one of the main concerns of voters before French elections. According to the OpinionWay-Kea election of January 18, 57% of French voters consider the purchase of power as the most important issue, ahead of security, safety, immigration and unemployment.

Europe limits cryptocurrency mining

In this context, energy is always conserved if it can be saved.

According to the Financial Times on Wednesday, January 19, Erik Thedéen, Chief Financial Officer of the EU, believes that the EU should ban cryptocurrency mining due to concerns over its use of electricity.

In a press interview, Siden said that “proof of service” cryptocurrency mining should be banned as electricity usage has become a major issue in Europe. Like his country Sweden.

“Bitcoin is now a problem in Sweden because a lot of energy continues to be used in mining,” Siden told the Financial Times.

According to the Cambridge Bitcoin Electricity Consumption Index, Bitcoin consumes 0.6% of the global electricity market.

According to Swedish regulators, Europe must restrict Bitcoin to meet its 1.5°C weather targets in Paris. If wind power generation off the coast of Sweden ultimately applies to my Bitcoin, regulators call it “ironic.”