With the global energy crisis triggering a spike in oil demand, Brent Oil reached a price of $85 per barrel for the first time since 2018. The demand for oil comes due to a mass shortage of gas and coal.
Brent futures in London rose by 1.3% to a price of $85.10 per barrel. According to the International Energy Agency, the energy shortage has sparked an abnormally large volume of crude stockpiles in the U.S. storage hub of Cushing.
U.S. State Department Spokesman Ned Price stated last week that U.S. natural gas prices have more than doubled over the past year, a concerning issue with winter fast approaching. The U.S. is confirmed to be in talks with OPEC+ members over energy supply, “expressing in private our concerns” as explained by Price.
Stephen Brennock, an analyst at brokerage PVM Oil Associates, gave the following assessment on the situation: “Oil consumption will continue to outpace supply until the end of this year, but it looks set to be a different story in 2022.”
Nationwide crude stockpiles in the U.S. have increased by over six million barrels, the Energy Information Administration revealed.
