(Bloomberg) Oil rose as supplies at the biggest U.S. storage hub tumbled amid an energy crisis that’s sent foreign buyers hunting for cheaper barrels.Crude futures in New York advanced above $83 a barrel, erasing an earlier decline as the dollar cooled. While headline prices have been volatile over the past two sessions, the market’s structure has surged as Cushing stockpiles sink toward critically low levels.One key physical market gauge, the so-called cash roll, has climbed to its strongest level since 2018 — one of a number of signs this week that traders are pricing in increasingly tight supplies at the vital U.S. hub.
Oil rallied to its highest since 2014 earlier this week on concern that soaring demand is racing ahead of supply. U.S. President Joe Biden said Americans should expect gasoline prices to remain high into next year because OPEC is withholding production, and analysts are predicting supplies will slump further.
“What I see is a market correctly pricing very tight conditions, and conditions that will get tighter,” said David Martin, head of commodity-desk strategy at BNP Paribas. “We’re going to draw stocks this quarter and next.”
West Texas Intermediate for December rose 0.9% to $83.21 a barrel at 8:49 a.m. in New York
Brent for December settlement gained 0.8% to $85.26
Other market news:
Royal Dutch Shell Plc hopes to restart its Ursa platform in the Gulf of Mexico as early as the first half of November, a person familiar with the matter said. It’s been shut since late August.
Chinese oil refiners are racing to avoid adding another key fuel to the list of commodities in short supply that are crippling economic activity.
China’s independent oil refiners have bought only one cargo of West African crude since the plants’ new import quotas were announced earlier this month, according to traders specializing in the region’s crude.
EnergyNow is an online energy news and data media service dedicated to providing essential up to-date information on the United States energy industry.
We provide live feeds designed to help energy professionals, field personnel, business owners, and senior business leaders get the latest energy news and data, energy industry press releases and energy job and event listings.
Help us to improve EnergyNow, Give us your feedback