Brent eases off of three-year high

Brent fell from a three-year high above $80 a barrel, unable to withstand the pressure of US equities heading toward their biggest decline since May.

The international crude benchmark rose above the key, psychological level for the first time since October 2018 earlier Tuesday, on signs that demand is running ahead of supply and depleting inventories. West Texas Intermediate also pared gains, holding around $75 a barrel.

Oil’s latest upswing follows a flurry of bullish price predictions from banks and traders and speculation the industry isn’t investing enough to maintain supplies. The jump to $80 is adding inflationary pressure to the global economy at a time when prices of energy commodities are soaring. European natural gas, carbon permits and power rose to fresh records yesterday. (Bloomberg)