Oil prices continue to rise: Brent is trading above $85

On Monday, oil prices continue to rise after a significant increase last week, Interfax reports.

Lack of natural gas and coal in Asia and Europe is driving up the demand for oil in power generation, the International Energy Agency (IEA) expects that oil demand could increase by 500 thousand barrels per day in the coming months as a result of the energy crisis.

It is not worth expecting an increase in supply from OPEC+ or the American shale sector at the moment, so the main factor that can limit the impulse to the growth in the oil market will be a weakening in demand in response to a jump in prices, the expert says.

The cost of Brent December futures at the London ICE Futures exchange by 8:15 am Kyiv time on Monday amounted to $85.75 per barrel, which is $0.89 (1.05%) higher than the price at the close of the previous session. As a result of trading on Friday, the price rose by $0.86 (1%) to $84.86 per barrel, which is the maximum at the close of the market since October 9, 2018.

The price of WTI November futures at the New York Mercantile Exchange (NYMEX) reached $83.51 per barrel by this time, which is $1.23 (1.49%) higher than the final value of the previous session. On Friday, the value of these contracts increased by $0.97 (1.2%) to $82.28 per barrel, the highest since October 21, 2014.

Over the past week, Brent rose in price by 3%, WTI – by 3.7%. Both Brent and WTI finished in positive territory for the eighth straight week, with Brent having the longest period of continuous weekly gains since April 1999 and WTI since August 2004, according to Dow Jones Market data.

Manish Raj, chief financial officer of Velandera Energy Partners, believes that oil prices could reach $90 a barrel next month.

Tags: gas, oil, coal, USA, Asia, OPEC+, price, petroleum products, oil deliveries, oil reserves, crisis, economy, Europe

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