Brent oil surpassed $85 per barrel for the first time in London since 2018, marking the latest milestone in a global energy crisis that has seen prices rise.
On Friday, the global benchmark crude broke through a crucial milestone in intraday trade, while US crude futures also rose. The electricity market is seeing increased demand for oil products as a result of the gas and coal shortages, and some banks predict prices toIt’s also starting to deplete stockpiles: Cushing, the largest US storage centre, saw an abnormally high supply decrease this week for this time of year.
Meanwhile, the United States said that it will open its borders to vaccinated international visitors next month, indicating that demand might go up even more as economies recover from the pandemic. Prices are being supported by “further signals of energy supply tightness throughout the globe as we go into winter,” according to Phil Flynn, senior market analyst at Price Futures Group Inc.rise even more over the winter in the northern hemisphere.
Brent is expected to rise for the sixth week in a row because to strong demand and limited supply. China also granted a long-awaited fresh batch of quotas for private refiners to purchase additional oil, boosting demand even further. OPEC and its partners, however, must adopt a slow, phased approach to recovering output, according to Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman.