Saturday 16 October 2021

Oil’s Leap Through $85 Shows Spillover Effect From Energy Crisis - Bloomberg

Oil’s Leap Through $85 Shows Spillover Effect From Energy Crisis - Bloomberg

The global energy crisis is bleeding into the oil market.

Brent crude surged as high as $85.10 a barrel on Friday, a price that would have seemed unthinkable just 18 months ago, when when Covid halted global mobility and trashed demand.

An underlying recovery in consumption -- driven by road-fuel, freight activity, and latterly air travel -- is now being fired by the energy crisis. With natural gas trading at close to $200 in per-barrel terms in Europe, the consensus among analysts is that oil demand globally will be boosted by a further half a percentage point as companies rush to secure any fuel that can be used as a substitute, from diesel to fuel oil to crude.



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