Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil prices reach multi-year highs on tight supply

CommoditiesOct 25, 2021 03:23PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, U.S., March 24, 2016. REUTERS/Nick Oxford

By Stephanie Kelly

NEW YORK (Reuters) - Oil prices reached multi-year highs on Monday before steadying, as tight global supply and strengthening fuel demand in the United States and beyond supported prices.

Brent crude futures gained 46 cents to settle at $85.99 a barrel. The contract reached a session high of $86.70 a barrel, its highest level since October 2018.

U.S. West Texas Intermediate (WTI) crude futures were unchanged at $83.76 a barrel after reaching $85.41 a barrel, the highest since October 2014.

Both benchmarks have climbed by around 20% since the start of September. U.S. crude has risen for nine straight weeks, while Brent has risen for seven.

"The global energy supply crunch continues to show its teeth, as oil prices extend their upward march this week, a result of traders pricing in the ongoing rise in fuel demand – which amid limited supply response is depleting global stockpiles," said Louise Dickson, senior oil markets analyst at Rystad Energy.

Goldman Sachs (NYSE:GS) said a strong rebound in global oil demand could push Brent crude prices above its year-end forecast of $90 a barrel. The bank estimated gas-to-oil switching could contribute at least 1 million barrels per day (bpd) to oil demand.

After more than a year of depressed fuel demand, gasoline and distillate consumption is back in line with five-year averages in the United States, the world's largest fuel consumer.

Oil prices have also been bolstered by worries over coal and gas shortages in China, India and Europe, which spurred fuel switching to diesel and fuel oil for power.

"The reason we're seeing strength today is many fold, but amongst them is fuel switching," said Bob Yawger, director of energy futures at Mizuho.

In India, refiners' crude oil throughput in September edged higher from the previous month, government data showed on Friday, as refineries boosted output to meet surging demand.

Oil prices reach multi-year highs on tight supply
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (8)
Rodney Dangerfield
Rodney Dangerfield Oct 25, 2021 3:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yeah let me see some hands who thinks with millions of cars on the road trucks planes ECT how long we're supposed to keep this ridiculous 19th century technology going everyone's got really nice phones some even want their money on it... but are transportation and electrical grid are 19th century technology... I know why it's to take you peasants money until the well runs dry then they're going to throw their hands up and you're going to be standing there broke
Nordin Mohamad
Nordin Mohamad Oct 25, 2021 11:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
....kaya laa tokey minyak...
Cali Cartel
Cali Cartel Oct 25, 2021 11:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sekali kroni2 minyak pun kaya bossku
Eduff San
Eduff San Oct 25, 2021 9:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this news will remain at least till end of year. Just buy as much as you can
Saukat Khan
Saukat Khan Oct 25, 2021 6:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shoukhat Ansari
Emir Safa
Emir_Safa Oct 25, 2021 4:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cannot you please stop brainwashing? There is an obvious success of the US oil industry and there is no supply issue in the US, why are you trying to manipulate? Please stop this.
Ye Htut
Ye Htut Oct 25, 2021 12:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think nearly WTIreach $86 level
Keith Wilson
Keith Wilson Oct 24, 2021 11:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
700,000,000 barrels of oil in the US strategic reserve just sitting there when some could be released to ease supply issues. Sad thing is the US could refill the reserves with its own oil at its discretion. The US has an abundance of oil that Biden has purposefully forgotten about.
Catholic Man
CatholicMan Oct 24, 2021 11:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
9 months ago we were energy independent
perplexed76 .
perplexed76 . Oct 24, 2021 10:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
just keep saying "strong demand" without any proves
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email