Oil and equity markets were also boosted by news of a call between US President Joe Biden and his Chinese counterpart Xi Jinping. Analysts said the call raised hopes of warmer ties and more global trade.
see photosBoth grades posted a small gain in the week.
Backed by rising signs of supply tightness in the United States as a result of Hurricane Ida and US-China trade hopes boosted riskier assets, oil briefly touched $73 a barrel on Friday. About three quarters of US Gulf offshore oil production, or about 1.4 million barrels per day, has been stalled since late August. This is roughly equal to the output of OPEC member Nigeria.
“Markets are back to focus on tighter supply conditions globally, and that’s encouraging that,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. While China is releasing oil from its strategic petroleum reserve, the amount is more than offset by reduced production in the Gulf of Mexico, Flynn said.
Brent is up 41% this year due to supply cuts by the Organization of the Petroleum Exporting Countries and some demand reduction from the pandemic.
Brent crude rose $1.47, or 2.3%, to $72.92. Session high was $73.15 per barrel. US West Texas Intermediate (WTI) crude rose $1.58, or 2.3%, to $69.72.
Both grades posted a small gain in the week. Brent is up 41% this year due to supply cuts by the Organization of the Petroleum Exporting Countries and some demand reduction from the pandemic.
Oil and equity markets were also boosted by news of a call between US President Joe Biden and his Chinese counterpart Xi Jinping. Analysts said the call raised hopes of warmer ties and more global trade.
The United States added the rig in the latest week, energy services provider Baker Hughes said, adding that production could increase in the coming weeks.
“The Biden-Xi phone call has had the same impact on oil markets as it has on other asset classes,” said Jeffrey Haley, analyst at brokerage OANDA.
The United States added the rig in the latest week, energy services provider Baker Hughes said, adding that production could increase in the coming weeks.
On Thursday, both crude oil contracts fell more than 1% after China said it would stockpile crude through a public auction to help reduce high feedstock costs for refiners.
0 notes
In focus next week will be revisions to the oil demand outlook for 2022 from OPEC and the International Energy Agency. Two OPEC sources said OPEC may revise its forecast on Monday.
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