Posted on 10/11/2021 7:58:11 AM PDT by MNJohnnie
LONDON—Oil prices rose 2 percent on Monday, extending multiweek gains as an energy crisis gripping major economies shows no sign of easing amid a pick up in economic activity and restrained supplies from major producers.
Brent crude was up $1.62 cents, or 2 percent, at $84.01 a barrel by 0914 GMT, The highest level since October 2018.
U.S. oil rose $1.95, or 2.5 percent, at $81.30 a barrel, the highest since late 2014.
Prices have risen as more vaccinated populations are brought out of coronavirus lockdowns, supporting a revival of economic activity, with Brent advancing for five weeks and U.S. crude for seven.
Coal and gas prices have also been surging as economies recover, making oil more attractive as a fuel for power generation, pushing crude markets higher.
In India, some states are experiencing electricity blackouts because of coal shortages, while in China the government has ordered miners to ramp up coal production as power prices surge.
The energy crisis sweeping the world is raising the prospect of a difficult northern winter as heating demand rises.
“The news from last week that the Department of Energy is not planning to tap into strategic reserves for now is keeping the oil market tight and is supporting prices,” said UBS analyst Giovanni Staunovo.
U.S. Energy Secretary Jennifer Granholm had said last week that tapping the country’s emergency oil stash was being mulled by the administration to cool gasoline prices, however, later the Energy Department said it had “no plans to take action at this time”.
Drillers in the United States are taking advantage of the increase in prices and added five new oil wells last week, the fifth straight weekly increase in oil and gas rigs.
The Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, last week decided to maintain a steady and gradual increase in production.
“Depleting stocks, OPEC discipline, and the ongoing energy crunch will provide solid price support in the next three months,” said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.
"Green Energy" political dogmas around the world are making fossil fuels prices great again.
Government imposed shortages.
Stalin would be proud.
Gee..just think Johnnie. Last jan, a barrel of oil was at around 45 bucks.
Did not take long for ol Pig Face Bidet to solve that problem did it?
Bought a bunch of oil as soon as Biden took office. Seemed like a no brainer with what he was doing to domestic production and the dollar.
Up nearly 50% as of today.
Gas pries skyrocketing...I know, I filled my car up yesterday. Let’s Go Brandon.
All part of the plan to destroy America.
$3.60/gallon for 93 octane premium today...
Yet stocks are up by 0.50% in early trading.
The Ethanol Free unleaded 90 oct, for my Jeep Grand Cherokee HEMI V8, has jumped from $3.05/gal to $5.15/gal, in just 10mos. With a 25gal tank, it ain’t cheap to full up.
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