Oil Prices Soar... Gas Station Fuel Prices Up 30% in One Year

WTI Surpasses $80 for the First Time in 7 Years
Natural Gas and Coal Prices Also Soar

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] West Texas Intermediate (WTI) crude oil prices in the United States surpassed the $80 mark for the first time in seven years. The continued rise in prices of oil, natural gas, and coal is intensifying the global energy crisis.

On the 11th (local time) at the New York Mercantile Exchange, the November WTI price closed at $80.52 per barrel, up 1.47% ($1.17). This is the first time since October 31, 2014, that WTI prices have closed above $80 per barrel. According to data research firm FactSet, WTI has surged approximately 120% compared to November of last year.

North Sea Brent crude also rose 1.49% ($1.23) to $83.62, marking the highest level since October 2018. During the session, it soared to as high as $84.60. The Wall Street Journal (WSJ) reported, "Oil prices are showing signs of surpassing the rise in copper prices, which had been soaring earlier this year," and forecasted "the largest increase among major commodities in a decade."

The soaring oil prices are attributed to supply shortages. As winter approaches, electricity demand is expected to increase, while concerns over insufficient crude oil supply have continued to drive prices upward. Earlier, OPEC+ (the Organization of the Petroleum Exporting Countries (OPEC) member countries and non-OPEC allies) oil-producing countries decided last week to increase production by about 400,000 barrels per day in November as previously planned, dashing hopes for a larger supply increase.

The sharp rise in international oil prices is also increasing the burden on consumers. According to Opinet, as of the 12th, the nationwide average gasoline price at gas stations reached 1,682 KRW, a 28% increase compared to the lowest price of 1,317 KRW in November last year.

Along with rising oil prices, natural gas prices have also been strong day after day. According to WSJ, natural gas prices in the U.S. have tripled this year, raising concerns about winter heating costs. Coal futures traded on the China Zhengzhou Commodity Exchange also hit an all-time high, rising 11.6% to 1,408.20 yuan (218.74 dollars) per ton.