Baxia Markets
October 22, 2021

Oil price finally drops after hitting multi-year high

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After touching a three-year high above $86 a barrel on Thursday, oil fell $2 as a forecast for a warm winter in the United States put the brakes on a rally fueled by tight supply and a worldwide energy shortage. According to a National Oceanic and Atmospheric Administration report released Thursday morning, winter weather in much of the United States is predicted to be warmer than typical. After reaching a session high of $86.10, the highest since October 2018, Brent crude slid $2.31 to $83.51 at 11:37 a.m. EDT (1537 GMT). The price of West Texas Intermediate crude in the United States declined $2.40 to $81.02.




The US Energy Information Administration reported leaner crude and fuel stockpiles on Wednesday, with crude supplies at the Cushing, Oklahoma storage hub falling to a three-year low. Brent's price has increased by more than 60% this year, owing to a delayed ramp-up in supply by the Organization of Petroleum Exporting Countries and Allies (OPEC+) and a global coal and gas shortage that has forced power generators to turn to oil.


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