Rising demand pushes oil to fresh multi-year peaks

3 min read
NEW YORK: World oil prices vaulted Monday to fresh multi-year pinnacles on strong demand and tight supplies, fueling inflation worries and weighing on most global stock markets.
Rising demand pushes oil to fresh multi-year peaks

Concerns that demand could outstrip supply sent oil prices to multiyear highs.

The spike in energy prices saw West Texas Intermediate oil for delivery in November trading at $80.52 a barrel late Monday, its first time above $80 since October 2014, while London's Brent oil jumped to a three-year high at $84.59.

The recent decision by OPEC and other major producers not to ramp up output has further strained global supplies.

"Nerves are still clearly apparent in the markets," OANDA analyst Craig Erlam told AFP.

"The energy crisis is a major concern in the coming months, while inflation concerns and the prospect of tighter monetary policy are among the numerous economic headwinds," he said.

Noting there is "still plenty of momentum behind the oil rally," Erlam said it would not be a surprise to see oil back in the triple digits later this year.

All three major Wall Street indexes closed with losses after early gains evaporated, with the broad-based…
Bangkok Post Public Company Limited
Read full article