Market

Crude Oil Higher; Storms and IEA Forecast Help By Investing.com

© Reuters.

By Peter Nurse   

Investing.com — Oil prices traded higher Tuesday, climbing to a six-week peak, after the International Energy Agency predicted a sharp rebound in demand while another storm threatened U.S. Gulf of Mexico output. 

By 9:35 AM ET (1335 GMT), futures were up 0.7% at $70.94 a barrel, while futures were up 0.7% at $74.05 a barrel. 

U.S. Gasoline RBOB Futures were up 0.8% at $2.1872 a gallon.

The IEA released its latest of the crude market earlier Tuesday, and the Paris-based intergovernmental organisation saw three months of declining world fuel consumption from July to September due to the resurgence in Covid-19 cases.

That said, the agency then expects a sharp rebound in demand of 1.6 million barrels a day next month, with continued growth to the end of the year.

“Strong pent-up demand and continued progress in vaccination programs should underpin a robust rebound from the fourth quarter of 2021,” the agency said in the report.

This follows on from the Organisation of Petroleum Exporting Countries lifting its global oil demand forecast for 2022 by almost 1 million barrels a day on Monday.

Turning to supply, Hurricane Nicholas may have weakened into a tropical storm but it is still threatening severe damage to Texas and Louisiana, key U.S. oil producing states, just two weeks after Hurricane Ida ripped through the region.

“Some producers have already evacuated staff from offshore platforms, and we will need to keep a close eye once again on downstream assets along the Gulf Coast,” said analysts at ING, in a note.

About 794,000 barrels per day, or more than 40% of the U.S. Gulf’s oil and gas output remained offline on Monday as a result of Ida, according to offshore regulator Bureau of Safety and Environmental Enforcement.

The U.S. government responded to this by agreeing to sell crude oil from the nation’s emergency reserve to eight companies, including Exxon Mobil (NYSE:) and Chevron (NYSE:), while China has announced the sale of just over 7 million barrels from its strategic petroleum reserves on Sept. 24, boosting the supply available in the world’s second biggest oil consumer.

Later in the session traders will focus on the latest U.S. crude inventories data from the .

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Source link

Back to top button