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Oil in US close to 70 USD
Author:Mariusz Dasiewicz
Oil prices on the New York fuel exchange are approaching $70 per barrel. Investors are following information on the re-establishment of raw material production in the US, from the Gulf of Mexico, following the recent passage of Hurricane Ida, but this process is progressing very slowly, reported the brokers.
West Texas Intermediate oil supply for October at the NYMEX fuel exchange in New York City costs $69.97, higher by 0.36%.
Oil Brent in deliveries for November on the ICE Futures Europe fuel exchange in London costs 73.16 USD per barrel, more by 0.33%.
More than 2 weeks after Hurricane Ida hit a key oil production region – in the Gulf of Mexico – almost half of the oil production from this area has not yet resumed – according to the latest data from the Bureau of Security and Environmental Protection.
The disruptions in oil supply caused by Hurricane Ida were a "unordinary bullish shock" for the market – assessed by analysts Goldman Sachs Group Inc.
"Ida was +exceptional+ in terms of the impact on net increases on US and global oil balances, causing a decrease in stock of raw material, estimated at around 30 million barrels, which, however, may still increase to 40 million barrels" - Goldman Sachs analysts write in the market note.
Goldman Sachs experts also forecast that in the fourth quarter oil will lead in price increases among other raw materials.
"Resumption of oil capacity in the Gulf of Mexico and production capacity in the US after the hurricane Ida added a bit of a rise to oil prices" – Vandan Hari, co-founder of Vanda Insights consulting company, also estimates.
However, it adds that the balance of " bull" and "bears" on the horizon does not suggest a stronger price reflection.
Following Hurricane Ida, the loss of oil production in the Gulf of Mexico amounted to 1.1 million barrels a day, and it is not clear when that production will return to the markets – according to the analyses of the Vital Group, the world's largest independent trading company.
Meanwhile, on Monday, the OPEC cartel will publish its monthly assessment of global supply and demand for oil at a time when stocks of raw materials are still falling.
In the US, oil stocks have now fallen to the lowest level since IX 2019.
At the end of the previous session, WTI gained 2.3 percent on Nymex. As a result, she has already scored 3rd week with an increase in her ratings.
Source: PAP
