Brent Crude Touches $85 as EIA Expects Faster Demand Growth amid Energy Crunch

Oil prices briefly reached $85.10 a barrel on Friday as the energy crisis continued to disrupt the market amid rising demand for winter.

 

The international benchmark Brent crude briefly reached $85.10 per barrel intraday and dropped its gain to 0.96% to trade at $84.81. Meanwhile, West Texas Intermediate rose 0.91% to $82.05 per barrel.

Energy crunch continued in a circle from oil to gas and to coal, then circles around as energy producers are unable to meet rising demand from consumers, especially in Europe to prepare for the upcoming winter.

 

Meanwhile, the International Energy Agency (EIA) expected the energy crunch to boost oil demand by 500,000 barrels per day, which will result in a supply gap around 700,000 barrels per day throughout the remainder of this year or until OPEC+ decides to pump more production output.

EIA report supports crude oil price continuing to increase, still recommends oil play, chooses PTTEP as a top stock, while our refining business recommends speculation only. Global oil demand is now forecast to rise by 5.5 million barrels per day (MB/D) in 2021 and 3.3 MB/D in 2022 when it reaches 99.6 MB/D, slightly above pre-Covid levels.

Additionally, EIA stated that from September through end-2021, global output is set to rise 2.7 MB/D with OPEC+ accounting for 1.5 MB/D and non-OPEC+ pumping the rest. Total oil output fell 260 kb/d in September to 96 MB/D, led by steeper US hurricane losses.