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Oil prices rose sharply amid the energy crisis in Europe


December, 22 2021
watermark Economic news

Yesterday, oil prices showed a steady increase against the background of the energy crisis in Europe: the cost of gas in the region overcame another historical maximum at $2,187 per thousand cubic meters. And in such conditions, the demand for petroleum products will inevitably grow. 


On Wednesday morning, Brent oil quotes settled at $73.91 per barrel. Yesterday's daily high was marked at $74.57. North American WTI crude oil rose to $71.78 per barrel. 


Additional support for the oil market was provided by yesterday's data from the American Petroleum Institute (API), according to which crude oil reserves in the United States decreased by 3.67 million barrels. Today, we should pay attention to a similar report from the US Department of Energy, and if official data also confirm a reduction in raw materials stocks – this will be the fourth week of decline in a row. 


Analysts and market participants also continue to monitor the situation with the emergence of a new omicron strain of coronavirus. Experts fear that the new strain carries even greater risks for global oil demand than its predecessors. «Any threat of falling demand will contribute to investors avoiding risks and outflow of funds from energy markets,» experts say.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.