Oil down as global energy crunch persist

Oil fell on Tuesday in Asia, its first decline in four days. The commodity took a breather following weeks of gains brought about by a rebound in global demand, with the gains contributing to energy shortages in economies from Europe to Asia, according to some investors.

Brent oil futures slipped 0.12% to $83.55 by 10:56 PM ET (2:56 AM GMT), while West Texas Intermediate (WTI) futures dropped 0.16% to $80.39. Both benchmark futures remained above the $80 mark.

A global shortage of energy that gripped Asia, Europe, and the U.S. has sent power prices soaring to record highs in recent weeks. Rising natural gas prices also prompted power generators to replace it with crude oil. The switch could increase demand for crude oil by an estimated 250,000 to 750,000 barrels per day.

In China, the world’s leading importer of oil, major industrial regions are suffering from power shortages. However, the country’s thermal coal futures went up on Tuesday, with prices up by over 10%.

Qatar admitted to its customers on Monday that it would not be able to increase output and lower energy prices. The country is the world’s largest producer of liquefied natural gas.

Investors are now waiting for data from the American Petroleum Institute, due within the day.