Could we see oil at $100 USD a barrel?
U.S. shale producers have been reluctant to invest in raising output after years of weak returns, so U.S. production remains well short of late 2019's record at nearly 13 million barrels per day.
Reuters reported on October 14, 2021, that "a global energy crunch is expected to boost oil demand by 500,000 barrels per day (bpd) and could stoke inflation and slow the world's recovery from the COVID-19 pandemic, the International Energy Agency (IEA) said on Thursday.
Oil and natural gas prices have soared to multi-year highs recently, sending power prices surging to record levels as widespread energy shortages hit Asia and Europe.
Record coal and gas prices as well as rolling blackouts are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations humming.
Higher energy prices are also adding to inflationary pressures that, along with power outages, could lead to lower industrial activity and a slowdown in the economic recovery.
As refined energy products follow, we have discussed with our clients in Mexico, the US and Canada, the possibility of taking advantage of current storage options to optimize their sales price and commercial position for commodities. Our company is well versed in the procurement and negotiation of ULSD, Gasoline, Jet Fuel and other products that thus far have followed the upward trend in prices that WTI and other products have driven.
U.S. shale producers have been reluctant to invest in raising output after years of weak returns, so U.S. production remains well short of late 2019's record at nearly 13 million barrels per day."