Spark Global Limited reports:
Oil prices edged lower on Tuesday, falling for the first time in four days in what analysts called a respite. The move comes after weeks of energy shortages in major economies driven by a rebound in global demand.
Brent crude was down 6 cents at $83.59 a barrel at 0440 GMT, up 1.5 percent after hitting a three-year high on Monday.
Us crude fell 13 cents to $80.39 a barrel after also rising 1.5 per cent in the previous session to its highest level in nearly seven years.
“There is still a lot of momentum behind the rally and the fundamentals remain extremely favorable,” said Craig Erlam, senior market analyst at OANDA.
“Would it be a surprise to see oil prices back up to triple digits later this year? Probably not.”
Power prices have risen to record levels in recent weeks, hit by energy shortages in Asia, Europe and the US. Soaring natural gas prices are also prompting power plants to switch from the cleaner fuel to oil.
Analysts estimate that the switch from gas to oil for power generation could increase global demand for crude by 250,000 to 750,000 barrels a day.
Reprint indicated source：Spark Global Limited information