Oil prices rise above $80 a barrel for first time in three years

Oil prices rise above $80 a barrel for first time in three years

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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 per cent 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 per cent 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