InstaForex

October 11, 2021

The Power of Oil Prices is Unmatched

 Black commodities soared higher earlier in the week, as oil markets continued to be pressured by supply constraints from major producers and growing global fuel demand.


Heading into the European session, both benchmarks traded above $ 80 a barrel, with Brent crude trading up 1.4% to $ 83.57 a barrel.


While US WTI crude futures jumped about 1.8% to $ 80.83 a barrel, the highest level ever seen since late 2014.



With more coronavirus restrictions reopened, rising global demand for fuel has driven up prices, with Brent up for five weeks and US WTI up for seven weeks.


Recently, Malaysia has announced the easing of restrictions by granting permission to cross the state and abroad. This good news will definitely further increase the demand for fuel in Asia.


In addition, the strengthening of black gold was also supported by the soaring prices of fuels such as coal and natural gas due to low energy supply ahead of the winter. This causes consumers to switch to other energy products.