• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 16 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 hour CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 3 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 4 hours NordStream2
  • 22 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 55 mins Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 4 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 4 days Modest drop in oil price: SPRs vs US crude inventory build
  • 4 days 2019 - Attack on Saudi Oil Facilities.
  • 7 hours "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 5 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 days Ukrainian Maidan after 8 years

WTI Crude Hits Highest Level In 7 Years

WTI crude hit the psychologically important $85 per barrel mark earlier on Monday—the highest the U.S. crude benchmark has traded since October 2014.

WTI prices eased later in the afternoon, with the benchmark falling back to $84.02—still up on the day and up about 20% month on month.

The skyrocketing crude prices are largely the result of gas-to-oil switching amid a natural gas crisis in Europe and Asia. According to a note to clients from Goldman Sachs, it sees global crude oil demand could see a million barrel per day bump as the price of natural gas booms.

The bank estimates that global oil demand has already passed the 99 million bpd mark, and will return to 100 million bpd with Asia’s demand rebounding.

But that proclamation was made before China began issuing further lockdowns amid yet another wave of Covid-19 infections. The bank did note, however, that any potential lockdowns in China would be brief and, therefore, not a significant impact on oil demand.

In the United States, strong demand for gasoline and distillates is further supporting WTI prices. Despite high gasoline prices, U.S. consumption of gasoline and distillates is now back at five-year average levels.

As the world’s largest fuel consumer, fuel demand in the United States is a critical component for determining prices.

In addition to the natural gas crisis and U.S. fuel demand, another support for crude prices is market panic as India, China, and Europe struggle to keep power plants flush with not just natural gas, but coal as well.

Goldman said that a strong showing in global oil demand could push Brent crude above its year-end forecast of $90 per barrel.

At 1:00 pm EST, WTI was trading at $83.80, while Brent was trading at $85.90.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • George Doolittle on October 25 2021 said:
    Doesn't seem to be being reflected in the equity prices of the litany of US oil producing Companies.

    Amazing day for $tsla Tesla Motors and Rivian et al.

    Long $hog Harley Davidson
    Strong buy

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News