Energy Crunch Lifts Brent Toward $86
What Happened
Brent crude traded near $86 on October 25, the highest since 2018, as OPEC+ stuck to gradual supply increases and a European gas shortage spurred fuel switching. US crude inventories stayed tight, reinforcing the rally.
What It Means
The move underscored how tight the energy balance had become heading into winter. Higher oil and gas prices fed inflation data globally and pressured governments to consider reserve releases or subsidies to buffer households.
What I Think
Energy is the macro hinge. Without faster supply growth, prices stay vulnerable to weather and geopolitics. I expect policymakers to lean on strategic reserves and urge OPEC+ for flexibility, but the structural underinvestment story still bites.
Market Terms
- OPEC+ slow-walk supply – Gradual output hikes despite a tight market.
- Gas-to-oil switching – European shortages pushing utilities toward crude.
- Strategic reserve talk – Governments weighing releases to cap prices.
- Underinvestment squeeze – Thin spare capacity keeping prices jumpy into winter.
Scribbled by Maria – about • blog • finance glossary • contact © 2025 MarsMaria – all insights reserved.