Oil in the $80's. File Image/Pixabay
Oil prices on Tuesday stayed in the $80 range, with analysts summarizing the mindset of traders by pointing out that coal and natural gas shortages and the way countries are dealing with this is pretty much uncharted territory.
Rebecca Babin, senior energy trader at CIBC Private Wealth Management, said, "We don't have a playbook for what happens when natural gas prices in Europe go to the equivalent to $250-a-barrel in crude.
"The market's trying to calibrate this new energy situation."
Patrick Pouyanne, chief executive officer at TotalEnergies, told delegates to a conference in Paris, "What's going on with gas may worry some Asian countries with emerging economies; some Asian countries are currently coming back to fuel oil, which may have an impact on the oil market."
West Texas Intermediate on Tuesday rose 22 cents to $80.73 per barrel at 11:55 a.m. EST while
Brent fell 8 cents to $83.57 per barrel.
While analysts contemplated the energy crunch and supply chain challenges, the Institute of International Finance on Tuesday said rebounding crude prices are widening economic gaps between oil exporters and importers in the Middle East and North Africa.