Oil Prices Jump On Middle East Tensions, Could be Help To Green Economy
The war in the Middle East continues to escalate. If the situation worsens, Goldman Sachs believes the price could exceed $90 a barrel. One month ago, it was $70.It is $79 today. If the price surges, it is bad for the economy and good for the environment.
*More On Oil Prices:
Just over two years ago, at about the same time Russia invaded Ukraine, crude moved above $100. US supply and low demand from China, the world’s largest importer of the commodity, helped bring prices down. OPEC+ made adjustments that also helped lower prices.
While a quick surge in crude prices could hurt GDP, it makes oil a less attractive fuel. As crude prices rise, the prices of gas, jet fuel, heating oil, and petrochemicals follow. Expensive crude makes EVs, wind, and solar energy more attractive.
US EV Sales
EV sales have flattened in the US and are down in Europe. Only China has posted large percent increases in purchases. High oil prices could change the US and EU figures.
Solar and wind energy have grown, but investors find many of their projects risky. That makes money expensive if it is available at all.
AI will continue to eat electricity. A portion of electricity generation comes from crude. Demand has already shifted to green sources. If oil is high, that will accelerate.
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