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Oil prices in the US are rising
Author:Mariusz Dasiewicz
Oil at the U.S. fuel market goes up. Investors are assessing the prospects for GDP growth in view of the expansion of the Covid-19 pandemic and the latest figures on oil stocks in view of concerns about tightening the supply side.
West Texas Intermediate oil supply for September at the NYMEX fuel exchange in New York City costs US$67.63, higher by 0.6 percent. The price of WTI increased by 1.5% during the previous session, after a decrease of 7.5 percent on Monday.
Oil Brent in deliveries for September at the ICE Futures Europe in London is valued at $69.77 per barrel, higher by 0.61%. On Tuesday Brent price went up by 1%.
The latest report by the American Paliw Institute (API) shows that oil stocks in the US increased by 804,000 barrels last week. Gas supply also increased by 3.31 million barrels.
On Wednesday, official data on US oil stocks and its products will be given after 16.30th Department of Energy (DoE).
Analysts now point to two forces that balance oil prices at the current level – on the one hand, concern about GDP growth prospects due to the coronavirus pandemic and, on the other hand, tightening on the raw material supply side.
"The market is clearly concerned about the prospects of demand. In the current situation, it is difficult to imagine price increases unless the pandemic is under control," said Stephen Brennock of the PVM oil broker.
Meanwhile, the Organisation of Petroleum Exporting Countries expects global demand for oil to increase by 6.6% in 2021.
"Global demand still seems to be dynamic, so the oil market should end with a supply deficit in the coming months, despite the increase in production to be introduced by OPEC+," said Eugen Weinberg of Commerzbank.
Goldman Sachs Group Inc. warned that oil prices would fluctuate and raised the price forecasts for raw material to USD 80 per barrel.
The Organisation of Petroleum Exporting Countries (OPEC) and its non-OPEC allies reached an agreement on Sunday to increase their extraction by 400,000 barrels a day from August.
At the Sunday meeting of the Ministers of the Member States of the Organisation of Petroleum Exporting Countries (OPEC) and the cooperating countries (OPEC plus), it was also decided to increase the mining limits set for Iraq, Kuwait, Russia, Saudi Arabia and the United Arab Emirates.
At the end of the Tuesday session on LME, copper fell by 0.87% to US$9.336 per tonne.
Source: PAP
