Oil hits fresh 7-year highs

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

Anymouse

https://www.reuters.com/business/energy/oil-rises-headed-six…

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.

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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.

Jaak