Tokyo: oil prices Tuesday fell for the first time in four days, taking a breather, analysts said, after weeks of gains from a rebound in global demand, which is contributing to energy shortages in economies from Europe to Asia.
Brent crude was down 26 cents, or 0.3%, at $83.39 a barrel by 0211 GMT, after touching a three-year high on Monday on the way to a 1.5% advance.
American oil It fell 33 cents, or 0.4%, to $80.19 a barrel, also up 1.5% in the previous session, hitting its highest level in nearly seven years.
“There is still a lot of momentum behind the oil rally and the fundamentals are extremely favorable,” said Craig ErlamSenior Market Analyst Oanda. “Would it be any surprise to see oil back in the triple digits later this year? Probably not.”
Energy shortages in Asia, Europe and the United States have led to record increases in electricity prices in recent weeks. Rising natural gas prices are also encouraging power generators to swap the cleaner-burning fuel for oil.
Analysts have estimated that switching from natural gas to oil for power generation could increase crude oil demand by 250,000 to 750,000 barrels per day.
In China, where key industrial sectors are witnessing power shortages, thermal coal futures were on the rise again on Tuesday with prices rising by over 10%.
Qatar, the world’s largest producer liquefied natural gas (LNG) told customers on Monday that it was unable to help spark off energy prices and supply more fuel to the market.
“As far as we have given all our customers their dues, we are at the maximum,” Qatar’s energy minister said. saad al-kabiq. “I’m unhappy with gas prices being high.”
Brent crude was down 26 cents, or 0.3%, at $83.39 a barrel by 0211 GMT, after touching a three-year high on Monday on the way to a 1.5% advance.
American oil It fell 33 cents, or 0.4%, to $80.19 a barrel, also up 1.5% in the previous session, hitting its highest level in nearly seven years.
“There is still a lot of momentum behind the oil rally and the fundamentals are extremely favorable,” said Craig ErlamSenior Market Analyst Oanda. “Would it be any surprise to see oil back in the triple digits later this year? Probably not.”
Energy shortages in Asia, Europe and the United States have led to record increases in electricity prices in recent weeks. Rising natural gas prices are also encouraging power generators to swap the cleaner-burning fuel for oil.
Analysts have estimated that switching from natural gas to oil for power generation could increase crude oil demand by 250,000 to 750,000 barrels per day.
In China, where key industrial sectors are witnessing power shortages, thermal coal futures were on the rise again on Tuesday with prices rising by over 10%.
Qatar, the world’s largest producer liquefied natural gas (LNG) told customers on Monday that it was unable to help spark off energy prices and supply more fuel to the market.
“As far as we have given all our customers their dues, we are at the maximum,” Qatar’s energy minister said. saad al-kabiq. “I’m unhappy with gas prices being high.”
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