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Oil and natural gas prices have hit record highs while an energy shortage hits Europe and Asia, causing concern for when a turnaround may take place. According to a recent article from Noah Browning (Reuters), the current demand may fuel inflation and a slow recovery from the COVID-19 pandemic. The article cites a report from the International Energy Agency (IEA), wherein the IEA states, "Higher energy prices are also adding to inflationary pressures that, along with power outages, could lead to lower industrial activity and a slowdown in the economic recovery."
Below is a short excerpt from Browning's article, "Energy crisis could threaten global economic recovery, says IEA," which was published Oct. 14, 2021:
"Record coal and gas prices as well as rolling blackouts are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations humming," the IEA said in its monthly oil report. "Higher energy prices are also adding to inflationary pressures that, along with power outages, could lead to lower industrial activity and a slowdown in the economic recovery. As a result, global oil demand next year is now projected to recover to pre-pandemic levels," the Paris-based agency said.
Those interested can read Browning's full article here.