“Crude is now in a full speculative rally and buying frenzy” on the back of coal and gas shortages, said Vandana Hari, the founder of energy consultant Vanda Insights. The usual relief valves on the supply-side such as OPEC+ action or a spurt in shale output have been ruled out for now, with the only check on momentum being the demand response to higher prices, she added.

The energy crisis has contributed to China’s economy weakening in the third quarter, as electricity shortages in September forced factories to curb output or shut completely. The power outages also impacted crude processing last month, with refining rates dropping to the lowest level since May 2020. India’s diesel consumption, meanwhile, is gathering pace with the onset of annual festivals, increasing sales to about pre-virus levels in the first half of October. The battered aviation sector is also poised for a boost, with the U.S. set to open its borders to vaccinated foreigners on Nov. 8. NN: The pressure for OPEC to release more oil will be intense. We are already starting to see demand destruction. Crude is this high in reality because OPEC is holding barrels off the market. This will not last long as they see their arch enemy come back alive… US producers especially shale. They are breathing life back into the US shale producers they sought to destroy. I have seen them make this mistake 5 times. They take prices low to kill off US production. Only to get prices so high that everyone and their dog is making money no matter their production costs…. And the US is about to become energy self sufficient again and a major exporter…. The last thing OPEC wants besides  running Gonorrhea through their harem!!!!