Signs of a global energy crunch pushed oil prices above $80 a barrel for the first time in three years as markets grappled with the prospect of widespread fuel shortfalls heading into the end of the year.
Brent, the international benchmark, rose as much as 0.8 percent to $80.19 a barrel during Asia trading on Tuesday, hitting a three-year high for the second consecutive day. Tuesday’s rise brought the price of crude almost 55 percent higher for the year to date.
The latest gains for Brent came amid a broad rally in energy markets, with growing competition between Europe and China helping drive gas prices to record levels in recent weeks.
A shortfall in global gas production, along with a concerted drive in China to cut down on pollution from heavy industry, is expected to push crude higher as industries shift to using oil to generate power.
Chinese authorities’ clean energy drive, part of an effort to stave off an annual choking haze as Beijing prepares to host the Winter Olympics in February, has led to widespread outages that have disrupted factory activity and left many homes without power in the country’s north-east.
Chinese power producers have struggled to deal with a sharp drop in production that has pushed thermal coal prices in the country up 96 percent this year.
Oil prices are also rising in China, with crude futures in Shanghai up 27 percent from a low touched in late August, forcing Beijing this month to announce its first-ever public auction of state petroleum reserves to domestic refiners.
Meanwhile, the UK has been gripped by a fuel supply crisis triggered by part by a shortage of haulage drivers, with motorists queueing for petrol and stations running dry after a spate of panic-buying.