Oil remains near multiyear highsOctober 23, 2021
Oil edged higher on Tuesday and was near multiyear highs as an energy supply crunch continued across the globe, while falling temperatures in China revived concerns over whether the world’s biggest energy consumer can meet domestic heating needs.
The Brent crude benchmark rose 34 cents to $84.67 a barrel by 11:11 a.m. EDT (1511 GMT). US West Texas Intermediate futures rose 46 cents to $82.90 a barrel.
Prices have been climbing the last two months. Since the start of September, Brent has risen by about 18 percent, while WTI has gained by around 21 percent. “Supply-demand balances show that the market is experiencing a supply deficit, which is spurring deep inventory draws and driving prices upward,” said Louise Dickson, senior oil markets analyst at Rystad Energy.
“This market tightness is expected to extend into most of 2022, and crude oil demand will only catch up with crude supply by the fourth quarter of next year.”
With temperatures falling as the northern hemisphere winter approaches and heating demand increasing, prices of oil, coal and natural gas are likely to remain elevated, traders and analysts said.