Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Oil Up, Continues Multiweek Gains as Increasing Fuel Demand Meets Supply Restraint

Commodities Oct 10, 2021 11:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
-0.68%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.48%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

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

Position added successfully to:

Please name your holdings portfolio
 

By Gina Lee

Investing.com – Oil was up Monday morning in Asia, continuing multiweek gains. Supply restraints from major producers collided with growing fuel demand as economies continue to re-open and recover from COVID-19.

Brent oil futures rose 1.42% to $83.56 by 11:57 PM ET (3:57 AM GMT), after gaining almost 4% last week. WTI futures jumped 1.93% to 80.88, the highest since late 2014. U.S. crude rose 4.6% through Friday. Both Brent and WTI futures were above the $80 mark.

With more populations coming out of lockdown, including Australia’s Sydney which emerged from a 107-day lockdown, fuel demand has increased and driven prices up. Brent futures have risen for five weeks while WTI futures have gained for seven.

Although coal and gas prices have surged as economic recovery from COVID-19 continues, increasing crude oil inventories in the U.S. after recent draws could impact the black liquid.

"We think crude prices will struggle to climb much higher this quarter and still forecast them to gradually drop next year," Capital Economics chief commodities economist Caroline Bain said in a note.

U.S. crude inventories rose for a second straight reporting period, according to data from the American Petroleum Institute and the U.S. Energy Information Administration released during the previous week. The Organization of the Petroleum Exporting Countries and allies (OPEC+) also decided to maintain a steady and gradual increase in production at its meeting last week.

“OPEC’s decision to hold back from a bigger than scheduled increase in output is likely to see the market tighten further in the fourth quarter,” Australia & New Zealand Banking Group (OTC:ANZBY) Ltd. senior commodity strategist Daniel Hynes told Bloomberg.

"The market remains well bid as demand continues to grow,” he added.

Oil Up, Continues Multiweek Gains as Increasing Fuel Demand Meets Supply Restraint
 

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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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.
 
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