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 Trades Near $80 as Global Power Crisis Set to Boost Demand

CommoditiesOct 10, 2021 07:18PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Bloomberg. Propane delivery trucks at a Suburban Propane Partners location in Jeffersonville, Indiana, U.S., on Monday, Sept. 27, 2021. Oil may surge to $90 a barrel if the approaching winter in the northern hemisphere proves colder than normal, said Jeff Currie, global head of commodities research at Goldman Sachs Group Inc. Photographer: Luke Sharrett/Bloomberg

(Bloomberg) -- Oil steadied near the psychological $80-a-barrel mark as a global power crunch rattled the market while OPEC+ output has been slow to ramp up.

West Texas Intermediate futures climbed 0.7% in New York after topping the key price level on Friday for the first time since November 2014. From Asia to Europe, the prices of heating fuels such as coal and natural gas are surging as stockpiles run low ahead of the winter season, prompting a switch to products such as diesel and kerosene. 

READ: In a World Fighting Climate Change, Fossil Fuels Take Revenge

Crude has gained more than 60% this year as the roll-out of Covid-19 vaccines lifted movement curbs and, subsequently, oil demand. While the Organization of Petroleum Exporting Countries and its allies have pledged to return more withheld supplies to market, the increase is likely to lag rising consumption of transport and heating fuels during the upcoming winter months. 

Saudi Aramco (SE:2222) estimates the gas crisis has already increased oil demand by around 500,000 barrels a day, while Goldman Sachs Group Inc (NYSE:GS). sees consumption climbing even higher. Concerns further compounded after the U.S. Energy Department said it had no plans “at this time” to tap the nation’s oil reserves. 

READ: Aramco Says Global Natural-Gas Crisis Is Boosting Oil Demand

The coming weeks will be decisive for Iran’s nuclear program, German Chancellor Angela Merkel said, urging Tehran to come back to the negotiating table as stalled talks with world powers hang in the balance. A swift resolution to the stand-off is unlikely after the last round of talks ended inconclusively in June with no date set for the next one, keeping millions of barrels away from most international buyers.

Meanwhile, economists at Goldman cut their forecasts for U.S. growth this year and next, blaming a delayed recovery in consumer spending. The bank said in a report that it now expects growth of 5.6% on an annual basis in 2021 versus their previous estimate of 5.7%, and 4% next year, down from 4.4%.

©2021 Bloomberg L.P.

Oil Trades Near $80 as Global Power Crisis Set to Boost Demand
 

Related Articles

Oil steadies as investors assess Omicron's impact
Oil steadies as investors assess Omicron's impact By Reuters - Dec 08, 2021 5

By David Gaffen NEW YORK (Reuters) - Oil prices edged lower in choppy trade on Wednesday, taking a breather after gains earlier this week, as investors assessed the impact of the...

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.
 
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