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Saturday, October 16, 2021

WTI and Brent crude oil – quotes. Prices are rising. The reasons

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The US oil price broke the psychological barrier of $ 80 a barrel. This level was last recorded in November 2014. On top of that, crude oil continues to grow more expensive. The global energy crisis will further increase the demand for this raw material, inform brokers.

A barrel of West Texas Intermediate crude oil in supplies for November on the NYMEX fuel exchange in New York costs $ 80.88, up 1.93 percent.

Brent crude oil in deliveries for December on the ICE Futures Europe fuel exchange in London costs USD 83.64 per barrel, up 1.52 percent.

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Increases in the commodity market: gas, coal, oil

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In the markets, the energy crisis is making itself felt more and more – fuel prices such as natural gas and coal are rising – from Europe to Asia as fuel stocks are tightened ahead of winter in the northern hemisphere.

This prompts many consumers to switch to petroleum products such as crude oil and diesel.

Since mid-August, as the global energy crisis intensifies, the US benchmark WTI oil has already gained 30%.

Saudi Aramco estimates that the shortages in the supply of natural gas have already increased the demand for crude oil by around 500,000 tonnes. barrels a day. Goldman Sachs analysts estimate that the increase in oil demand is even higher.

OPEC + is cautiously increasing deliveries

Market concerns about oil supplies deepened after the US Department of Energy last week announced that there were no plans at the moment to use domestic crude oil reserves to ease the supply situation, i.e. to increase the amount of oil in the market. which can lower prices.

In addition, the OPEC + countries decided a few days earlier to increase supplies of their raw material in November by only 400 thousand. barrels of oil per day, and this increases the pressure on the further increase in oil prices on global fuel exchanges.

– OPEC +’s decision to refrain from larger-than-planned increases in oil production is likely to cause further tightening of the fuel market (price increases – ed.) In the fourth quarter – estimates Daniel Hynes, senior strategist for commodity markets at Australia & New Zealand Banking Group Ltd.

– The demand for oil is still growing – he emphasizes.

Iranian oil for “every investor”

Meanwhile, Iranian Oil and Gas Minister Javad Owji said over the weekend that he plans to offer oil and gas condensate to “any investor” who will either offer alternative commodities or invest capital in Iran’s US-sanctioned oil sector.

Owji said the global increase in oil demand bodes well for Iran, and his ministry predicts that energy demand will “grow day by day” as economies ease the restrictions imposed during the Covid-19 pandemic.

At the end of the previous session, US crude oil rose by 1.3 percent. Last week, WTI on NYMEX gained 4.6 percent.

Main photo source: Shutterstock



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