$80 oil sparks mixed expectations for world economy

Oil prices have jumped above $80 for the first time since 2018, this development is handing a major boost to producers but is simultaneously fuelling more inflationary pain for consumers.
Global supplies are disrupted because U. S. production is still hampered by ongoing fallout from Hurricane Ida in Louisiana and the Gulf of Mexico.
The price of European benchmark Brent North Sea crude for November delivery hit $80.75 a barrel assuming the highest level since October 2018, but edged lower on Wednesday.
The market has surged on expectations for strong demand and concerns about tight supplies as the world slowly recovers from the pandemic under relatively high inflation rates described by some financial officials as temporary.
Oil demand has also jumped during recent weeks because of the surge of natural gas prices around the world, and coal supply disruption in China.
Winners and losers
Higher oil prices are expected to benefit the net producers of petroleum-based products by boosting their export and tax revenues. Net consuming economies will lose out, since higher fuel costs will eat into the real value of disposable incomes and could impinge on production just at a time when businesses are confronting mounting cost pressures.
Crude oil pushes the wheels of the world economy, boosting the coffers of major producer nations both inside and outside the OPEC exporters’ cartel, on the one hand. On the other hand, oil prices highs could threaten the stumbled global recovery and stoke inflationary pressures because they lift manufacturing costs which translates into higher consumer prices and ignite extra inflation.