On Tuesday, Brent crude oil prices spiked in Asia on heightened expectations of rising demand. Supply concerns also contribute to the rise as the world slowly recovers from the pandemic.
Brent crude oil rose 0.9 percent in morning Asian trade to $80.24. This is its highest level since October 2018. Similarly, WTI gained 0.9 percent to $76.07, its highest level since October 2018.
In the midst of vaccine deployments and easing containment measures this year, black gold wagers have soared.
Similarly, crude inventories fell and increased production by OPEC and other major producers including Russia wasn’t enough to dampen the rise in commodities.
The crisis in fuel supply has also caused the UK government to call in the military after long queues at petrol stations enter their fourth day.
Around 150 military tankers are preparing to deliver fuel to petrol stations due to panic buying.
Not necessarily a peak
“The run on oil still looks to have some momentum,” said John Driscoll, an analyst at JTD Energy Services. He added that there were no signs yet that the run had peaked.
Due to the petrol crisis, the UK government suspended competition law by enacting the Downstream Petroleum Protocol. This protocol allows oil companies to work together to deliver fuel to dry filling stations. By using the protocol, fuel producers, suppliers, hauliers, and retailers could prioritize the deliveries of fuel to the areas and strategic locations in need.
The advance comes as the global economy shows signs of slowing due to supply chain problems, along with concerns about the Delta variant that is causing an outbreak in several countries.
Despite blockades around the world hitting demand and sending Brent at $16 and WTI at a total loss, prices have risen since early last year.
Brent crude oil (BZ=F) was up 1%, trading at $80.34 (£58.75) at the opening bell in London. Crude (CL=F) was also up about 1% to trade at $76.27.