Charts suggest oil prices may peak soon, Cramer says
Oil may be near its peak if historical patterns hold true, CNBC’s Jim Cramer said Tuesday. The commodity climbed to new multi-year highs Tuesday amid supply shortages and strong demand. Brent crude futures settled above $86 and U.S. benchmark West Texas Intermediate crude futures settled above $84, each the highest since 2014. “There’s a widespread sense that inflation will continue endlessly, that the oil move is unstoppable,” Cramer said. Click Here to read more from CNBC.
Oil prices reach multi-year highs on tight supply
Oil prices reached multi-year highs on Monday before steadying, as tight global supply and strengthening fuel demand in the United States and beyond supported prices. Brent crude futures gained 46 cents to settle at $85.99 a barrel. The contract reached a session high of $86.70 a barrel, its highest level since October 2018. U.S. West Texas Intermediate (WTI) crude futures were unchanged at $83.76 a barrel after reaching $85.41 a barrel, the highest since October 2014. Click Here to read more from Reuters.
Falling U.S. crude supply begins to impact global oil prices
The culprit behind the latest jump in oil prices isn’t soaring natural gas prices or even OPEC+’s limits on output but rather what is happening at America’s largest oil storage hub in Oklahoma. Traders are fretting that stockpiles in Cushing will fall as low as they physically can. It has sent gauges of market health known as timespreads soaring to their most bullish levels in years, a move that is now spilling over to the global Brent benchmark. Click Here to read more from World Oil.
A Global Oil Shortage Is Inevitable
Chronic underinvestment in new oil supply since the 2015 crisis and the pressure on oil and gas companies to curb emissions and even “keep it in the ground” will likely lead to peak global oil production earlier than previously expected, analysts say. This would be a welcome development for green energy advocates, net-zero agendas, and the planet if it weren’t for one simple fact: oil demand is rebounding from the pandemic-driven slump and will set a new average annual record as soon as next year. Click Here to read more from Oil Price.