Is energy crisis in Europe a cautionary tale for U.S.?
Continued shortages of natural gas and coal are boosting demand for crude to fuel power generation, depleting crude stockpiles. That, in turn, is pushing crude prices to seven-year highs.
West Texas Intermediate on the New York Mercantile Exchange spent the week above the $80 level for the first time since the fall of 2014, rising four of five trading days, recording only a 20-cent drop Wednesday. Prices rose 97 cents or 1.2 percent to close at $82.28 Friday, up from $80.52 at Monday’s close. Crude prices posted an eighth consecutive weekly increase, the longest stretch since 2015. The posted price ended the week at $78.26, according to Plains All American.
Natural gas prices on the NYMEX have retreated from their 13-year highs, rising three of five trading days this week. Prices dropped 28 cents to end the week at $5.41 per Mcf but up from $5.35 at Monday’s close.
Crude prices at risen more than 70 percent this year.
“I am ecstatic about current prices. But I don't think they are here long term,” David Bledsoe, president of Henry Resources, told the Reporter-Telegram by email. “The world still has about 5 million barrels of oil per day off line waiting to return and that will push prices back down once the emotion dies down. I think the current upturn is more emotional than structural. In fact, storage has built over the last two weeks and not continued to fall.”
Read more: https://www.mrt.com/business/oil/article/Is-energy-crisis-in-Europe-a-cautionary-tale-for-16536533.php
(Midland Reporter-Telegram)
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