Crude oil approaches five-month peak as prominent oil executives criticize hastening energy shift

Oil prices experienced a significant surge on Monday, reaching levels not seen since late October. The spike can be attributed to a variety of factors that have impacted the global energy market. Ukrainian drone attacks targeted Russian refineries, resulting in disruptions to a significant portion of Russia's refining capacity and subsequently decreasing crude oil exports.

This event, coupled with better-than-expected Chinese industrial production for January and February, has bolstered prospects for energy demand. Experts such as Stephen Innes from SPI Asset Management estimate that approximately 15% of Russia's refining capacity has been affected by the recent disruptions. Furthermore, analysts like Samer Hasn from XS.

com highlight China's 7% improvement in industrial production compared to the same period last year as a key factor boosting energy demand. In addition to these events, Iraq's decision to reduce oil exports in response to overproduction during January and February has also played a role in the upward trend of oil prices. Despite this, Mizuho's Robert Yawger notes that the gasoline market is the primary driver of the energy sector's rise.

Front-month Nymex crude for April delivery closed at $82.72 per barrel, its highest level since October 27, while front-month May Brent crude settled at $86.89 per barrel, marking its best level since October 31.

Looking at the broader energy markets, U.S. gasoline futures closed at their highest point since August 31, with front-month April gasoline settling at $2.

76 per gallon. At the recent CERAWeek by S&P Global conference in Houston, oil industry executives expressed strong opposition to rapid shifts away from fossil fuels. They emphasized the importance of realistic demand forecasts and continued investment in the oil and gas sector to meet global energy needs efficiently.