On Tuesday, oil prices stabilized near multi-year highs amid expectations that the energy crisis in Europe and Asia will further boost demand, Interfax reports.
The surge in prices for natural gas and coal in Europe and Asia, as well as low energy stocks in the Northern Hemisphere ahead of winter, are forcing companies to actively use oil and petroleum products. At the same time, OPEC+ continue to adhere to the previously agreed plan for the recovery of production, increasing it only gradually.
By 8:10 Kyiv time, December Brent futures rose in price by $0.05 (0.06%) to $83.7 per barrel at the London ICE Futures exchange. On Monday, Brent price increased by $1.26 (1.5%) to $83.65 a barrel, the highest since October 9, 2018.
By this time, November WTI futures increased by $0.03 (0.04%) to $80.55 per barrel at the New York Mercantile Exchange (NYMEX). In the previous session, the price rose by $1.17 (1.5%) to $80.52 per barrel, the maximum since October 31, 2014.
Brent price went up by about 20% since mid-August when the energy crisis began to intensify.
“If the price of oil gets closer to $90 a barrel, OPEC may increase production more and try to calm the market,” said Wayne Gordon, an analyst at UBS AG Wealth Management. "In a sense, the dynamics of the oil market now depends on the prices of coal and gas."
Citigroup analysts raised their oil price forecast for the current quarter to $85 per barrel. Experts believe that the price may jump up to $ 90 amid "increased demand, lack of supply, the transition of a business from using gas to oil and further growth in energy prices this winter."