U.S. crude futures traded above US $ 80 per barrel for the first time since November 2014 on Friday as a global energy crisis spurs demand as OPEC + producers keep supplies tight .

West Texas Intermediate (WTI) for November delivery broke key psychological level before pulling back and closing 1.34% higher at US $ 79.35 per barrel, gaining 4.57% from the previous week .

Brent crude for December delivery rose 0.54% per barrel to US $ 82.39, up 3.92% from the previous week.

Photo: Reuters

This week brought many indications that supplies will remain tight: Saudi Aramco said a global shortage of natural gas is already boosting demand for oil for power generation and heating, and the US Department of Energy has said he did not intend “for the moment” to exploit the country’s resources. oil reserves.

A weaker US dollar amid worse-than-expected US labor market data on Friday also boosted the appeal of commodities denominated in the currency.

The US benchmark index posted a seventh consecutive weekly gain, the longest advance since December of last year.

The economic recovery from the COVID-19 pandemic, along with supply disruptions in the Gulf of Mexico, had already tightened the market before rising natural gas prices spurred additional demand for petroleum products such as petroleum. diesel and fuel oil.

The decision by OPEC producers and their allies to only modestly increase production next month threatens to restrict supply further.

Meanwhile, various underlying oil market indicators are also showing signs of strength. The contract closest to WTI traded at the highest premium to second month futures since August, a sign of growing demand and tight supply.

The so-called rapid spread has increased as more people around the world try to replace fuel oil with natural gas as quickly as possible.

“They don’t need to buy it in a month, they needed it yesterday,” said Bob Yawger, director of the futures division at Mizuho Securities USA. “This is the situation of a panic buyer.”

Meanwhile, China still faces power outages, and Beijing has ordered state-owned companies to secure winter energy supplies at all costs. Chinese fuel oil futures jumped nearly 10% on Friday.

Additional reports by staff writer

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