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Oil in the U.S. goes to $80 per barrel
Author:Mariusz Dasiewicz
Oil prices in the US are heading for USD 80 per barrel, and this week the raw material has gained over 4% due to the global energy crisis, which plagues markets from Europe through Asia to the US. This will be the 7th week with the increase in WTI quotations and the longest increase series since December 2020," the brokers inform.
West Texas Intermediate oil supply for November at the NYMEX fuel exchange in New York City costs $79.25, higher by 1.21 percent.
Oil Brent in deliveries for December at the ICE Futures Europe fuel exchange in London costs USD 82.90 per barrel, higher by 1.16 percent.
The rise in oil prices increased after the U.S. Department of Energy (DoE) stated on Thursday that there are currently no plans to use US national oil reserves.
Earlier, "Financial Times" reported that the US was growing the prospect of releasing emergency oil reserves, and US energy secretary Jennifer Granholm said "all options are on the table". It did not exclude the ban on oil exports. "It's a tool we didn't use, but it's also a tool," she said.
The ongoing economic recovery after the Covid-19 pandemic, as well as the oil supply interruptions from the Gulf of Mexico, where Hurricane Ida passed a few weeks ago, has led to an exacerbated supply situation in the fuel markets.
In addition, rising gas prices spurred additional demand for oil products such as diesel and fuel oil.
"More demand for oil in the current energy crisis will probably continue to be the main driver of price increases," says Daniel Hynes, Senior Strategy on Raw Markets in Australia & New Zealand Banking Group.
Analysts indicate that while Russia offers Europe an increase in the flow of natural gas to the region, China is still struggling with energy supply interruptions and Beijing authorities have ordered state-owned companies to secure energy supply for the winter "at all costs".
Term contracts for fuel oil in China increased by almost 10% on Friday after the reopening of local markets after the holiday break.
In the United States, fuel oil stocks before the coming winter are now the lowest in over two decades.
Stocks of fuels distilled in the US, including diesel and fuel oil, are enough to meet demand for 31,2 days – according to the Department of Energy data. This is the lowest level of reserves of distilled fuel for this time of year since 2000.
End of previous session oil WTI on Nymex gained 1.1 percent. Since the beginning of this week, the raw material has increased by 4.5 percent.
Source: PAP
