Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started
Oil Down as Druzhba Line Reopens, Struggles at $90s Despite Weekly Gain
Published Aug 12, 2022 01:57PM ET
Updated Aug 12, 2022 03:06PM ET
© Reuters.
By Barani Krishnan
Investing.com -- It lasted long enough on the oil market radar to help get U.S. crude back to above $90 per barrel and Brent briefly to $100, even delivering a weekly gain for both.
But as far as fleeting factors go, the temporary disruption of Russian oil flows through the Druzhba pipeline could only do much.
West Texas Intermediate, the benchmark for U.S. crude, settled down $2.25, or 2.3%, at $92 per barrel, after a session peak at $94.81.
Brent, the London-traded global benchmark for crude, settled down $1.45, or 1.5%, at $98.15, after an intraday high at $100.08.
For the week, WTI was up 3.4%, offsetting some of last week’s 10% drop. Brent also gained 3.4% on the week, after last week’s 14% tumble.
The volatility in oil came after Ukraine's Naftogaz's JSC Ukrtransnafta, which controls distribution of the oil transiting the Druzhba pipeline, said earlier this week it had shut the passage for non-payment.
By late Thursday in Europe, Naftogaz said crude from Russia was flowing again on the system to customers in Hungary and Slovakia after it received payment for its service from Hungarian oil company MOL.
Also on Thursday, top U.S. Gulf of Mexico oil producer Shell (LON:RDSa) said it halted production at three deepwater platforms in the region. The three platforms are designed to produce up to 410,000 barrels of oil per day combined. But by Friday, crews were expected to replace a damaged part of the pipeline piece on the Gulf, Reuters reported.
Oil gained earlier in the week after the International Energy Agency — which is typically bearish on oil demand — said soaring international prices for natural gas could prompt more energy consumers to switch to oil for year-end heating purposes.
"Natural gas and electricity prices have soared to new records, incentivizing gas-to-oil switching in some countries," the Paris-based IEA said in its monthly oil report. It raised its outlook for 2022 oil demand by 380,000 barrels per day.
Meanwhile, the Organization of the Petroleum Exporting Countries, which usually does all it can to push crude prices up, cut its 2022 forecast for growth in world oil demand.
OPEC revised down its oil demand expectations by 260,000 barrels daily from its previous forecast for the year. The oil cartel has typically used lower demand as an excuse to cut production and boost prices.
Related Articles
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
Add a Comment
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.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.