Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Crude Oil Higher; Supply Tightens as Demand Rises

Commodities Sep 28, 2021 09:43AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
GS
-3.50%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BARC
-2.65%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MS
-3.85%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-4.86%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Peter Nurse   

Investing.com -- Oil prices powered ahead Tuesday, climbing for the sixth consecutive session, boosted by a tight supply outlook while demand picks up as Covid-19 restrictions are lifted.

By 9:45 AM ET (1345 GMT), U.S. crude futures were up 1.1% at $76.28 a barrel, hitting its highest since July, after jumping 2% the previous day. Brent futures were up 1% at $79.50 a barrel, reaching its highest since October 2018, after climbing 1.8% on Monday.

U.S. Gasoline RBOB Futures were up 1.1% at $2.1925 a gallon.

Crude demand has been picking up as a number of countries start to ease their mobility restrictions. Japan announced it will lift the state of emergency in a number of prefectures in response to a sharp drop in new Covid-19 cases, while Australian authorities have announced plans to gradually reopen locked-down Sydney, the country's most populous city.

Additionally, German airline Lufthansa said demand for transatlantic flights had more than tripled in the week since the U.S. relaxed its conditions on arrivals from Europe.

However, most of the recent gains have been stimulated more by tightness in global supply. The important U.S. Gulf of Mexico region was severely hit by Hurricanes Ida and Nicholas in August and September, damaging platforms, pipelines and processing hubs, and shutting most offshore production for weeks. 

At the same time, the Organization of the Petroleum Exporting Countries and their allies have been very cautious over the extent they ramp up output to meet recovering demand having severely curbed production during the pandemic.

“While the scale of the deficit for the remainder of this year means that the market can absorb more than the currently planned 400,000 bbls/d increase per month, the group will want to ensure that the market continues to draw inventories. This is particularly the case given that in 2022, the oil market is expected to be much more balanced,” said analysts at ING, in a note.

This suggests these high prices are likely to stick around for some time to come.

Barclays (LON:BARC) raised its 2022 Brent and WTI price forecasts to $77 and $74 a barrel, respectively, while Morgan Stanley (NYSE:MS) sees Brent trading at $77.5 a barrel in the third quarter under a base case and at $85 in a bull case.

Last week Goldman Sachs (NYSE:GS) said oil could surge to $90 a barrel, $10 higher than the bank’s current forecast, if the approaching winter in the northern hemisphere proves colder than normal.

Investors now await U.S. crude oil supply data from the American Petroleum Institute, due later in the day.

 

Crude Oil Higher; Supply Tightens as Demand Rises
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
حمزة فاضل
حمزة فاضل Sep 28, 2021 10:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email