Oil’s Going to Have a Good Winter, Even If You and I Don’t
A combination of strong demand and weak supply is sending crude toward $80 a barrel. That won’t help those already worried about gas and electricity prices.
It’s not just gas and power that will get more expensive this winter.
Photographer: Polly Thomas/Getty Images EuropeFears of an oil glut are receding, as stronger demand and curtailed supply are set to tighten the market and lift prices. It’s going to be a good winter for oil producers, but a further hit to consumers who are already reeling from soaring gas and electricity costs.
The surge in natural gas prices, which has seen the costs of both liquefied supplies and pipeline deliveries to European markets jump to records, is starting to have knock-on effects on the oil market. Consumers are seeking to switch away from pricey natural gas and to marginally less expensive oil.