The glow of black gold remained unstoppable
News_Code: 355444 9/25/2021 11:49:29 AM
The glow of black gold remained unstoppable
Oil prices rose on Friday, hitting a three-year high for the third week in a row as global production disrupted.
 

Brent crude closed up 84 cents, or 1.1 percent, at $ 78.9 a barrel. West Texas Intermediate traded up 68 cents, or 0.9 percent, at $ 73.98 a barrel.

It was the highest final price for Brent oil since October 2018 and West Texas Intermediate since July 2021. Brent oil rose for the third week in a row, and West Texas Intermediate rose for the fifth week in a row following production disruptions in the Gulf of Mexico after Hurricane Ida in late August.

However, the upward trend in prices was somewhat limited by the first general sale of China's state oil reserves. According to informed sources, state-owned companies PetroChina and Hongli Petrochemical Chemical Company purchased four shipments totaling 4.43 million barrels.

The trading price of very low sulfur diesel in New York reached its highest level since October 2018.

"As oil prices rise for another week, the market is counting on the long-term impact of supply disruptions and possibly the need to withdraw reserves to meet refinery demand," said Lewis Dixon, chief oil market analyst at Rystad Energy.

Some disruptions may last for months and have already led to significant depletion of US and world oil reserves. According to traders, US oil refineries are buying Iraqi and Canadian oil in search of other sources to replace the lost oil supply in the Gulf of Mexico.

Indian crude imports also hit a three-month high in August, breaking from a record low in July.

Some OPEC Plus members are struggling to increase production due to low investment or repair delays due to the Corona pandemic outbreak. Kazakhstan's largest oil producer, Tengizchevroil, has said it will delay parts of its $ 45.2 billion development project by three to seven months.

On Friday, statistics from Baker Hughes Oil Company Services showed that US energy companies added to the number of oil and natural gas drilling rigs last week. The number of oil and natural gas drilling rigs increased by 9 in the week ending September 24, reaching 521, the highest level since April 2020. The number of rigs for the whole month increased by 13 rings, which was the fourteenth consecutive monthly growth for the first time since July 2017. Drilling companies increased the number of rigs by 51 in the third quarter.

UBS financial group analysts predict that Brent oil prices will rise to $ 80 a barrel by the end of September due to stockpiles, lower OPEC production, and stronger Middle East demand.

According to Reuters, analysts noted that China's Evergrande is a risk to oil prices. The company's electric vehicle unit warned that it faces an uncertain future unless it receives liquidity immediately.