Benchmark crude oil trended higher on Friday, October 8, albeit at an uneven pace: while Brent edged up only 0.07% to $82.13/bbl, WTI climbed 0.62% to $79/bbl.
Global investment banks in analytical reviews have referred to the current levels of oil and gas prices as a global energy crisis. However, coal has also joined the rapidly rising oil and gas prices, skyrocketing amid statements about a sharp decline in coal reserves in China and India.
Higher gas and coal prices cause additional demand for oil as backup fuel feedstock at power plants, and this morning oil prices surged to new highs, with Brent up 2.29% at $84.24/bbl, and WTI breaking through the psychologically significant $80/bbl level, up 2.76% at $81.54 by the time of writing. Our Brent price forecast for today is in the range of $83-84.5/bbl.