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Oil rises to $110. Goldman Sachs says we’ll be in the triple digits for years (www.cnn.com)

submitted 12 hours ago by MicroWave@lemmy.world to c/economics@lemmy.world

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Oil prices rose Friday as energy infrastructure in the Middle East was damaged and the vital Strait of Hormuz was still largely shut.

Goldman Sachs even suggested that higher prices could last all the way through 2027.

Brent crude, the global oil benchmark, rose 1.4% to $110.2 a barrel. WTI, the US benchmark, was up 0.3% at $95.9.

“The persistence of several prior large supply shocks underscores the risk that oil prices may stay above $100 for longer in risk scenarios with lengthier disruptions and large persistent supply losses,” Goldman analysts wrote in a note Thursday.

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[–] pedz@lemmy.ca 14 points 12 hours ago (2 children)

As someone that hates the fact that we didn't transition to renewable energy, I'm glad they're going up. I don't personally buy gas/petrol and I rarely buy fossil fuel in general. But as someone that has to eat, this is not going to be good.

Unfortunately we prefer to rely on cheap oil by bombing and invading other countries, sometimes killing a few thousand or a few hundred thousand in the process. But this is just collateral damage.

I can only hope this will push the world to a rapid transition to renewable energy, but it's more likely that people will just pay more while bitching and whining that the price of gas is too damn high.

[–] galaxy_nova@lemmy.world 11 points 11 hours ago (1 children)

If republicans truly wanted independence from other countries that they seem to love we’d have renewable energy.

[–] jtrek@startrek.website 9 points 10 hours ago

Republicans don't speak honestly. They just say whatever they think will get them power and in-group solidarity.

[–] blarghly@lemmy.world 1 points 11 hours ago (2 children)

Much as lemmy hates to admit it, economics is a thing, and increased oil prices will drive consumers to make less oil-dependent choices for their transportation needs. Ideally, this would also come with effective pressure on local, state/provicial, and national governments to reform land se policies and invest in low-carbon infrastructure as well. But even if they don't, people and businesses will eventually find the cheapest way to get around somehow.

[–] pedz@lemmy.ca 1 points 4 hours ago

I worked as a clerk in a gas station 20 years ago. People were complaining when prices went over $1 per litre. Now it's around $1.70 a litre and people just keep buying it while still complaining.

I know 3 person that changed their car last year. They all went with gas engines. And theg complain that the price of gas is too high. Meanwhile some other regions of the world already pay more than $2 per litre, and they also just continue to buy it and complain.

In the 70ies there was also a peak like this and for a while, people did buy smaller cars and started to be more sensible, but the prices eventually went back down, and most people went back to gas guzzlers while complaining about prices.

If economics are supposed to push people to change, apparently the prices are still not high enough. This shit is like cocain.

[–] Deceptichum@quokk.au 1 points 10 hours ago

If its only for a year, many will continue on as they are already invested and change is expensive.