US oil prices remain above $ 80 a barrel as the global energy crisis – from Asia to Europe to the US – will increase oil demand and cause a tightening of the situation on the fuel markets, brokers inform.
A barrel of West Texas Intermediate crude oil for November deliveries on the NYMEX fuel exchange in New York costs $ 80.42, down 0.12 percent.
Brent crude oil for December deliveries on the ICE Futures Europe fuel exchange in London costs USD 83.62 per barrel, down 0.04 percent.
The oil market is shrinking
The oil markets are starting to shrink more before winter in the northern hemisphere is approaching, as the shortages of natural gas and coal lead to the search for alternative fuels to generate electricity. So the demand is growing, among others for heating oil and diesel fuel.
The cautious actions of the OPEC + countries with regard to supplying the markets with raw material from the alliance also increase the pressure on the fuel exchanges and contribute to higher prices.
– If oil prices are tending to $ 90 per barrel, there is a possibility that OPEC + will start to open the cocks with oil a little more and will try to cool the heated sentiment in the fuel markets – says Wayne Gordon, strategist at UBS AG Wealth Management.
“In some ways, oil has joined gas and coal in the price rises, and much will depend on how cold winter is,” he adds.
Oil prices – analysts’ forecasts
Citigroup Inc. analysts They raised their Brent oil price forecasts for the fourth quarter to $ 85 a barrel, and they do not rule out that the crude oil may go up to $ 90 a barrel if the gas-to-oil swap is even stronger.
If oil prices continue to rise, the US administration of President Joe Biden may begin to put more pressure on OPEC to pump more oil.
“Joe Biden knows high gasoline prices are not good for authorities,” said Daniel Vergin, vice president of IHS Markit. “We will certainly hear more about it from the US administration,” he adds.
Meanwhile, Vivek Dhar, an analyst at the Commonwealth Bank of Australia, believes it may be difficult to get more oil from the cartel and its allies
“OPEC + is likely to struggle to meet rising oil demand for the remainder of this year,” points out Dhar.
At the end of the previous session, US crude oil rose by 1.5 percent.
Main photo source: Shutterstock