TOKYO, Oct 12 (Businesshala) – Oil prices fell for the first time in four days on Tuesday, analysts said, after weeks of gains from a rebound in global demand that could contribute to energy shortages in economies from Europe. Used to be. Asia.
Brent crude was down 26 cents, or 0.3%, at $83.39 a barrel by 0211 GMT, after touching a three-year high on Monday on the way to a 1.5% advance.
US oil fell 33 cents, or 0.4%, to $80.19 a barrel, having also risen 1.5% in the previous session, hitting its highest level in nearly seven years.
“There is still a lot of momentum behind the oil rally and the fundamentals are extremely favorable,” said Craig Erlam, senior market analyst at OANDA. “Would it be any surprise to see oil back in the triple digits later this year? Probably not.”
Energy shortages in Asia, Europe and the United States have led to record increases in electricity prices in recent weeks. Rising natural gas prices are also encouraging power generators to swap the cleaner-burning fuel for oil.
Analysts have estimated that switching from natural gas to oil for power generation could increase crude demand by 250,000 to 750,000 barrels per day.
In China, where key industrial sectors are witnessing power shortages, thermal coal futures were on the rise again on Tuesday with prices rising by over 10%.
Qatar, the world’s largest producer of liquefied natural gas (LNG), told customers on Monday that it was unable to help spark off energy prices and supply more fuel to the market.
“As far as we have given all our customers their dues, we are maximizing,” Qatar’s Energy Minister Saad al-Kaabi said. “I’m unhappy with gas prices being high.”