News

Oil prices are rising.. Brent crude is near $ 83

  • 08 October, 2021
  • 2:34 pm EEST

Oil prices rose, during morning trading, today, Friday, and are heading to achieve weekly gains of nearly 5%, with the increasing shift away from gas in light of the increase in its prices.

And oil prices rose by more than 1%, at the close of trading on Thursday, with US crude rising above $78 a barrel, coinciding with the decline of the US currency, after it witnessed a decline during previous transactions.

Oil Prices Today

Brent crude futures prices for December delivery rose 1.13%, to $82.88 a barrel, by 08:21 AM GMT (11:21 AM Mecca Time).

The price of West Texas Intermediate crude futures – November delivery – rose by 1.19%, recording $79.23 a barrel.

Switching From Gas To Oil

Edward Moya, chief market analyst at OANDA, confirmed that fuel demand is improving in light of the economic recovery and recovery from the effects of the Corona pandemic, Reuters reported.

He pointed out that the approaching winter raises concerns about pressure on gas supplies.

Moya explained that the expectations of oil prices in the markets are high, noting that there are no indications that the current deficit in supply and demand will change, according to Reuters.

  • Update – Oil prices are rising by more than 1%… and US crude is above $78
  • Update – Oil prices fell for the first time in 5 consecutive session

A commodity analyst at ANZ revealed that stocks of US distillates, such as diesel, reached their lowest levels in the winter since the beginning of the current millennium.

And he revised his forecast for the demand for crude oil, for the current quarter, equivalent to 450 thousand barrels per day.

The rise in oil prices came today, to continue achieving gains of nearly 5%, this week, according to Reuters.

During the week, Brent crude hit a 3-year high, at $83.47, while WTI was close to a 7-year high.

The rise in prices this week was driven by the rise in gas prices, which prompted investors to turn to oil as an alternative solution.

Analysts called for focusing on monitoring the extent of the transition from gas to oil, in light of the continued rise in gas prices.

OPEC+ Decisions

Oil prices were also affected by the OPEC+ decision, to keep plans to increase only 400,000 barrels per day, next month.

On the other hand, JPMorgan analysts played down the correlation of oil prices with gas prices, stressing that their previous estimates of the shift in demand from oil to gas – of 750,000 barrels per day – may be overstated.

 

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