(Bloomberg) – The price of barrels in New York has dropped to $ 72 a barrel after a record break in European energy prices.
West Texas Medium futures fell 0.6%, reaching their highest level since early August. As industries begin to curb consumption, Europe’s gas and energy prices are set to rise to unprecedented levels. According to Citigrop Ink, an increase in energy consumption could increase consumers’ demand for diesel fuel by up to 2 million barrels a day.
Still, signs of oil abuse continue to rise. U.S. raw materials fell last week from 6 million barrels to two years, according to government figures, allowing coronavirus vaccination programs to reopen. Chevron Corporation CEO Mike Wert warns that the world is facing high energy costs in the future.
The investor’s optimism is growing at a time when key oil prices are rising. Heavy Brent options traded up for two months on Wednesday.
According to Helge Andre Martinson, senior oil market analyst at DNB ASA, “supply cuts have increased prices in the energy sector, which is expected to shift from gas to oil.” We still believe that soft prices will return until the end of the year and the beginning of next year, when limited production returns and OPEC + continues to grow.
Solid prices for gas, liquefied natural gas and oil are expected to last “for a while” as manufacturers resist the need to re-drill, Chevron Weiss told Bloomberg News. Norwegian Equatorial Fish (ASA) says European gas prices are expected to rise during the winter.
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