Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. REVELANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Hazloc Heaters
Hazloc Heaters

EnergyNow Showcase

Oil Posts Fifth Weekly Advance as Global Markets Tighten


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate
(Bloomberg) Oil rose for the fifth straight week with the global energy crunch set to boost demand for crude as stockpiles decline from the U.S. to China.Futures in New York gained 2.8% this week. The global benchmark Brent settled at the highest in nearly three for the second day in a row. Global onshore crude supplies sank by almost 21 million barrels last week, led by China, according to data analytics firm Kayrros, while U.S. inventories are near a three-year low. The surge in natural gas prices is expected to force some consumers to switch to oil, tightening the market further ahead of the northern hemisphere winter.

“The market is pricing in a prolonged impact of supply disruptions, and the likely storage draws that will be needed to fulfill refinery demand,” said Louise Dickson, oil markets analyst at Rystad Energy, in a note. In terms of oil demand, “no new lockdowns in Europe, robust recovery in China road activity, and the U.S. nixing its ban on foreign travelers from November 2021, all lift prospects for upside in the coming quarters.”

Brent, WTI rally this week as supplies tighten

Oil has steadily climbed higher this month after a period of Covid-induced demand uncertainty, with some of the world’s largest traders and banks predicting prices may climb further amid the energy crisis. Global crude consumption could rise by an additional 370,000 barrels a day if natural gas costs stay high, according to the Organization of Petroleum Exporting Countries.

Various underlying oil market gauges are also pointing to a strengthening market. The key spread between Brent futures for December and a year later is near $7, the strongest since 2019. That’s a sign traders are positive on the market outlook. Money managers increased their bullish ICE Brent bets positions to the most in six months, indicating many believe there’s yet more room for crude prices to climb.

Prices
  • West Texas Intermediate for November delivery rose 68 cents to $73.98 a barrel in New York
  • Brent for November settlement climbed 84 cents to $78.09 a barrel, the highest since October 2018

At the same time, the premium options traders are paying for bearish put options is the smallest since January 2020, another indication that traders are less concerned about a pullback in prices.

Meanwhile, China sold crude oil from its strategic petroleum reserves for the first time via auction in a historic effort to curb raw materials prices, with a unit of PetroChina Co. Ltd. and Hengli Petrochemical Co. Ltd. securing volumes.

Other related news:
  • Vitol Group expects global crude demand to climb by an extra half a million barrels a day this winter, with prices likely headed above $80 a barrel, as a gas-led energy crunch drives a rush for other fuels.
  • The U.K. is trying to stop drivers panic-buying gasoline as lines of drivers build up outside filling stations. BP Plc and Exxon Mobil Corp.’s U.K. unit both said that a shortage of truck drivers was hampering deliveries of fuels to some locations.


Share This:



More News Articles


New SHOWCASE Directory Companies

 

Becht
RAM Industries Inc.
RHK Hydraulic Cylinder Services Inc.
Osperity