The crude oil market is embroiled in a broad rally across the energy sector

U.
S.
crude futures rose $0.
12, or 0.
15%, to close at $80.
64 on Tuesday (Oct.
12), while Brent Oil fell $0.
23, or 0.
27%, to $83.
42, after reaching an intraday high of $84.
23 and an intraday low of $
82.
72.
The shortage of natural gas and coal comes at a time when winter in the northern hemisphere is onset, causing some in the power industry to start using fuels such as diesel and oil, and investors fluctuate
as they assess how the global power crisis will affect oil demand this winter.

The governments of Asia's two largest energy consumers scrambled to fill a widening power supply gap on Tuesday, hitting global stock and bond markets amid fears that rising energy costs could fuel inflation
.
Rebecca Babin, senior energy trader at CIBC Private Wealth Management, an energy trader in Europe, said it was difficult to predict what would happen
if European gas prices reached $250 a barrel.

James Whistler, SSY's global head of energy derivatives in Singapore, said the crude oil market has been weighed down by a general rally in the energy sector, with high natural gas and coal prices making it possible for power companies to turn to oil for power generation
.
Electricity prices have reached record levels
in recent weeks due to energy shortages in Asia, Europe and the United States.
Analysts expect the gas-to-oil swap in the power generation sector to lead to an additional 250,000-750,000 barrels
per day in demand for global crude oil.
Saudi Aramco estimates that gas shortages have led to an increase in intraday oil demand of about 500,000 barrels, with Citi expecting demand to reach 1 million barrels
per day.

Meanwhile, the International Monetary Fund (IMF) on Tuesday lowered its growth outlook for the United States and other industrialized countries, saying ongoing supply chain and price pressures have prevented the global economy from recovering
from the pandemic.
The IMF's World Economic Outlook lowered its global growth forecast to 5.
9 percent from 6.
0 percent in July, while maintaining its 2022 growth forecast of 4.
9 percent
.

Phil Flynn, an analyst at Price Futures Group, said people were starting to realize that the risk of higher energy prices could derail
economic growth.
Is it good or bad for energy demand?

Spread and Gap (SKEW) analysis of crude oil futures showed a stronger bullish outlook for oil prices as traders reflected expectations
of falling inventories.
The recent test of a three-year high in premium to WTI futures over the next delivery month contract underscores tight supply
in the market.
This phenomenon occurs in October, and this month's spreads usually narrow
due to seasonal increases in inventory in Cushing, Oklahoma, the storage center.
In percentage terms, the premium was the largest since 2011, when the nearby Cushing suffered a transportation bottleneck and WTI rose more than 17%
that month.

Last week, the spread between put and call options, also known as skew, fell below zero
for the first time since 2019.
The downward trend suggests that oil traders prefer to pay price insurance rather than a sharp increase
.
Oil prices are negatively correlated with bias, with a daily average of 0.
3 and 120 days
as of Monday.