Oil hits fresh 7-year highs

Good timing for the Alberta producers as there is also increases in pipeline capacity coming on line.



January 28, 2022 10:54 AM AST

Oil hits fresh 7-year highs on supply concerns

By Rowena Edwards

London, Jan 28 (Reuters) - Oil prices reached seven-year highs on Friday as geopolitical tensions continue to raise supply concerns.

Both Brent and WTI are on track for their six-weekly gain in what would be the longest run of weekly gains since October.

Supply scarcity has pushed the six-month market structure for Brent into steep backwardation of $6.62 a barrel, the widest since 2013. This means that current levels are higher than those in later months, which usually encourages traders to release oil from storage to sell it promptly.


This high will disappear when the geopolitical tensions calm down and supply concerns disappear.

Fossil oil importing countries should go on spree to develop non-fossil oil transportation and develop alternative fuel facilities to rid themselves of this fossil oil addiction.