Brent Crude Nears $85 As Global Energy Crisis Worsens

The New Diplomat
Writer

Ad

Peter Obi, Activists, Others Warn of Fresh hardship as FG imposes 5% fuel tax

By Obinna Uballa Nigerians may be in for fresh economic hardship as the Federal Government announced a new 5 percent tax on all refined fossil fuel sales, including petrol, diesel, and aviation fuel, with effect from January 2026. The levy, introduced under the Harmonized Tax Act recently signed by President Bola Tinubu, will be collected…

Peter Obi Denies Seeing Viral Video of Tinubu's Motorcade In Lagos, Blasts Vulgar Displays

I ‘ll end Banditry in Two Months If… Zamfara Gov, Dauda Lawal, Declares

By Abiola Olawale Zamfara State Governor Dauda Lawal has declared that he could eradicate banditry in the state within two months if granted direct control over security agencies. While speaking on the issue of banditry in Zamfara, the governor expressed frustration over what he described as the centralized command structure of the Nigeria Police Force…

Tinubu jets out again, to France, UK, on vacation, shortly after Japan, Brazil trips

By Obinna Uballa President Bola Tinubu on Thursday departed Abuja for Europe to begin a 10-day working vacation, the State House has announced. According to a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, the President will spend the period between France and the United Kingdom as part of his 2025 annual…

Ad

…Brent crude nears $85 as the global energy crunch continues to worsen.

…China’s coal and power crisis worsened over the weekend, after sixty coal mines in the country’s top coal-producing region were forced to shut amid heavy rain, flooding, and landslides.

…The tighter coal and natural gas markets globally raise the outlook for gas-to-oil switch, which is set to boost oil demand.

Oil prices extended Friday’s rally into Monday, with the U.S. benchmark topping $81 and trading just shy of $82 a barrel as Europe and Asia continue to struggle to secure energy supply for the winter.

As of 8:21 a.m. EDT on Monday, the front-month WTI Crude contract traded at $81.75, up by 3.00%. The international benchmark, Brent Crude, was up 2.35% at $84.34.

Oil extended the rally from last week, which saw the U.S. benchmark topping the $80 per barrel for the first time since 2014.

China’s coal and power crisis worsened over the weekend, with coal futures in China closing at a new record high on Monday after sixty coal mines in the country’s top coal-producing region were forced to shut amid heavy rain, flooding, and landslides. The weather-related setbacks for Chinese coal production come at a time when the world’s second-largest economy is grappling with a shortage of coal supply and a power crisis, which threaten to slow economic growth.

Europe’s natural gas prices rose on Monday, after the softness seen at the end of last week, following forecasts of colder weather. Gas prices in the UK and at the Dutch TTF hub, the European gas price benchmark, were off the record highs from last week. Yet, the latest data from Gas Infrastructure Europe (GIE), cited by ING, shows that gas storage sites across Europe are just over 76 percent full at the moment, compared to a five-year average of nearly 91 percent.

The tighter coal and natural gas markets globally raise the outlook for gas-to-oil switch, which is set to boost oil demand.

Crude oil “started the week on a strong footing as the global power crunch continues to raise expectations for higher gas-to-oil switching demand at a time where OPEC+ maintains its modest pace of oil monthly oil production increases,” Saxo Bank’s strategy team said in note on Monday.

“With WTI already trading at seven-year high, Brent may now target the 2018 high at $86.74,” the bank’s analysts added.

NB: Tsvetana Paraskova wrote this article for Oilprice.com

Ad

X whatsapp