Oil consolidates below fresh multi-year highs of $82.15 (WTI)

• Oil prices are soaring to multi-year peaks on Monday.
• Widespread energy shortages in Asia, Europe and the United States underpin demand for oil.

WTI is trading at $81.02bbls and bid on the day, up 1.95% at the time of writing but well below the highs of $82.15bbls. The price moved from a low of $79.50bbls to scale multi-year peaks as global demand returns.

As the winter months and colder weather move in, demand for energy is growing at the same time that the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, have held back from boosting supply even as prices have risen.

Meanwhile, the widespread energy shortages in Asia, Europe and the United States have seen gas prices soar through the roof which is a likely factor playing into demand for oil as nations switch to alternative energy sources for power.

''Analysts have estimated that switching from natural gas to oil could add anywhere from 250,000 to 750,000 barrels per day of crude demand,'' Reuters wrote in a note on Monday. In other parts of the world, such as in India, some states are experiencing electricity blackouts because of coal shortages. In China, the government ordered miners to ramp up coal production as power prices surge.

Meanwhile, staying with the demand front, analysts at TD securities argued that the Delta-variant risks have proved benign. The analysts explained that growing departure levels suggest air traffic will continue to support jet fuel demand across both APAC and the US. ''This demand recovery is highlighted by the highest level of jet fuel exports from China since the early days of the stimulus-induced recovery in the summer of 2020.''

The analysts at TD Securities have revised their energy forecasts higher, anticipating that Brent crude could trend towards $90/bbl for 2021Q4 and 2022Q1 before consolidating thereafter.