What will be the consequences of a shortage of oil in the future

Long positions outnumber shorts by a ratio of 6. Bullishness towards oil is led by middle distillates, where funds have amassed a net position of million barrels 87th percentile and long positions outnumber shorts by almost 95th percentile.

Consumption of mid-distillates such as diesel and gas oil has been boosted all year by the strong global economic recovery, concentrated in distillate-intensive manufacturing and freight. Now distillate is getting an extra lift from the global shortage of coal, gas and electricity, which could increase demand for diesel for heaters and generators this winter as well as boosting consumption of light fuel oil in dual-fuel power plants.

Related columns:. And in , nations like Britain and Canada that were not significant oil importers, suffered recession along with the rest of the world. I spent nearly 30 years at MIT as a student. I've been president of the US Association for Energy Economics, I serve on the editorial boards of two publications, and I've had my writing translated into six languages. This is a BETA experience.

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Divisions have deepened among European Union countries ahead of an emergency meeting of ministers on Tuesday on their response to a spike in energy prices, with some countries seeking a regulatory overhaul and others firmly opposed. Related columns: - How high are oil prices really? More from Reuters. Sign up for our newsletter Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox. Sign up.