Is energy crisis in Europe a cautionary tale for U.S.? [View all]
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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