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An energy crisis might be in sight

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 October 2021
Recent global events have sent the prices of oil and natural gas to record levels

According to the International Energy Agency (IEA), a global energy crunch is expected to kick up oil demand by 500.000 barrels per day, leading to an increase in inflation and slowing the global economic recovery.

In its monthly report, IEA stated: "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."

The increase in demand in the past quarter was responsible for the biggest draw on oil products stocks in eight years. At the same time, the IEA estimates that OPEC+ will pump 700,000 barrels per day (BPD) below the estimated demand for crude oil in Q4 2021. Group's spare production capacity is set to shrink at a fast pace, from 9 million BPD in Q1 2022 to 4 million BPD in Q2.

After the Paris-based agency's outlook, now, all eyes will be on the US Energy Information Administration (EIA) report.

At the moment of writing, Crude oil was up 1.1% at $81.28 per barrel, while Brent traded at $84.12 a barrel.

Sources: investing.com, reuters.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.