Energy Preview: WTI Crude Hits $80 Per Barrel

7 Jan 2022 , 09:13 AM

WTI Crude oil futures raced up to the key $80 per barrel mark. Overall sentiments remain firm today as Asian equities are trading up. EIA noted this week that the Brent crude oil price increased from 2020 to average more than $70 per barrel (b) in 2021 as global demand for petroleum products increased faster than production, leading to global inventory draws. Nominally, the annual average crude oil price reached its highest level since 2018. Crude oil prices are the largest determinant for wholesale and retail gasoline prices, which were at their highest nominal levels since 2014. Increasing demand and decreased supply resulted in consistent global petroleum inventory withdrawals from February through December that contributed to increasing crude oil prices. Although the 2021 inventory withdrawal estimate is still preliminary, if realized, it would represent the largest annual petroleum inventory withdrawal since 2007.

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