On Monday, Brent and WTI jumped 2.6% and 3.2% respectively. Later, the price of December Brent crude futures rose 2.54% to $84.48, while the price of November WTI crude futures climbed 3.13% to $81.83.
At the start of the trading session, oil gained 2-2.5%, while during the past week Brent rose by almost 4% and WTI was up by 4.6%. By the way, the rise in oil prices has been recorded by analysts for the second month in a row.
The reason for this spectacularly positive trend in the commodities market was investor worries over the persistent global shortage of energy supplies.
Low commercial reserves in the United States continue to be one of the main upward factors for oil prices. According to the latest data, for the week to October 1, the crude reserve was around 421m barrels. This compares with 474m barrels in June 2021 and 482m barrels in January.
According to media reports, power was cut off in several states in India due to a shortage of coal. Meanwhile, the PRC authorities have decided to increase coal production amid rising electricity costs.
According to Friday's Commodity Futures Trading Commission data, speculators increased the number of net long positions in WTI crude contracts during the week to 5 October. The number of active gas and oil rigs in the United States increased for the fifth week in a row on the back of an impressive rise in the price of oil.
The spectacular data from commodity markets has led specialists and analysts to make short- and long-term forecasts. Many of them believe that by the end of 2021 rising energy costs could stimulate a rise in inflation, which would cause the US economy to recover at a slower pace. According to claims by other experts, this process could even lead to a temporary recession in the US and global economies.
During 2021, the cost of crude oil increased by more than 60%, natural gas doubled in price between April and September, and the price of coal has also set records.
The reasons for such dynamics of the commodity market are an increase in demand and a limited supply. Consumers are buying more and businesses are increasing energy-intensive production. All this happens against the backdrop of the OPEC+ decision to gradually raise oil production.
Analysts have started to predict a strong rise in the price of oil in the future. Some suggest that prices will rise to $90 per barrel by early 2022. Others claim they will be $190 per barrel closer to 2025.
However, some market experts insist that the cost of oil and gas will remain unchanged until the end of this year.
