Hi, I'm Nailabudu, and welcome to Axios Recap, where we dig into one big story.

It's Wednesday, October 6th.

Today, energy prices are rising around the world.

As extreme weather becomes the norm and more people are on the move,

China and India are facing an electricity crisis while prices at the gas pumps are going up by 50% in the

U.S. And according to the consumer price index, energy costs were up 25% in September compared to a

year ago. But oil producers are now becoming hesitant about turning on the spigot while energy

prices go up and other world economies continue to shift their focus

towards renewable energy. After this, Axios is Kate Marino on rising energy prices and what

that means for our economic recovery. And we're joined now by Axios's business editor, Kate

Marino, who's been reporting on energy prices. Kate, what's causing this global rise in energy prices?

Well, it's kind of a perfect storm of demand for energy skyrocketing,

while supply remains a little bit constrained.

And that's all against the backdrop of the global reopening of the economy,

you know, coming out of the pandemic lockdowns and all of the

new energy demand related to that. Obviously, this kind of gets into supply and demand.

Let's just take, first of all, the demand side of this. What does that look like right now?

If you think back to the beginning of the pandemic, there were very few flights taking place. People weren't

going on trips, office buildings, and movie theaters were shuttered. So the demand for energy

was really low. And it's really just as simple as it's bouncing back in a huge way from those lows.

And so what's also the pandemic, I assume, affected the supply side, what was being produced?

That's right. So because of the lower demand at the beginning of the pandemic, a lot of oil

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