By Adedapo Adesanya
Brent crude moved closer to $85 per barrel on Tuesday, October 19, boosted by the non-slowing energy supply crunch across the globe.
Data obtained showed that the price stood at $84.96 per barrel yesterday after it gained 63 cents or 0.75 per cent. while the United States West Texas Intermediate (WTI) rose by 39 cents or 0.47 per cent to $82.83 per barrel.
Oil prices remained bullish as several continents continue to suffer from a major energy crunch.
In China, falling temperatures fortified concerns that the world’s largest energy consumer will not be able to meet domestic demand for heating.
Analysts noted that as the Northern Hemisphere winter approaches and heating demand increases, prices of oil, coal and natural gas are likely to remain elevated.
However, the power crunch that is sending prices higher is also hurting Chinese economic growth, which fell to its lowest level in a year, data showed.
These energy crunches could also bring demand lower as high power prices and supply disruptions compel industrial players to curb production.
Meanwhile, the ever-increasing trajectory of gas prices across the globe is adding another layer of support for crude demand, with many Asian nations seeking ways to supplant gas usage.
At the same time, the White House continues to put pressure on the Organisation of the Petroleum Exporting Countries and allies (OPEC+) to address the oil supply issue, with Mr Joe Biden, the President of the United States, attempting to convince the group that it needs to pump more oil into the market.
“We are continuing to press, through member countries — member countries of OPEC, even as we are not a member — to address the supply issue and work to address it here as well,” Press Secretary, Ms Jen Psaki said during a briefing at the White House o Tuesday.
“I would also note that what we’re also working to address is more of a logistics issue of how we are moving supply around the country, which means there are shortages in some places and not others, and that’s something that we are also working to address,” Ms Psaki also said.
However, the oil group appears to be unmoved by the high prices of fuel in the US, choosing to stick to its own production quotas as some members are struggling with years of underinvestment and insufficient exploration.
Modupe Gbadeyanka