Brent crude futures were up 93 cents, or 1.1%, at $88.44 a barrel. The global benchmark had earlier touched $89.13, the highest level since October 13, 2014.
see photosWTI crude futures edged higher by $1.53 to $86.96 a barrel, the highest level since October 9, 2014.
Oil prices jumped higher on Wednesday after a fire in a pipeline from Iraq to Turkey raised concerns about an already tight short-term supply outlook. Flow has resumed through the Kirkuk–Ceyhan pipeline, which is the second largest producer in the Organization of the Petroleum Exporting Countries, to the Turkish port of Ceyhan to export crude from northern Iraq.
A senior security source said the incendiary explosion in a pipeline in the southeastern Turkish province was caused by a fall of an electric pylon, not an attack.
Supply concerns escalated this week after Yemen’s Houthi group attacked the United Arab Emirates, OPEC’s third-largest producer, while Russia, the world’s second-largest oil producer, built up a large military presence near the border with Ukraine. , which increased the risk of attack.
Brent crude futures were up 93 cents, or 1.1%, at $88.44 a barrel. The global benchmark had earlier touched $89.13, the highest level since October 13, 2014.
US West Texas Intermediate (WTI) crude futures edged higher by $1.53 to $86.96 a barrel, the highest level since October 9, 2014.
OPEC+ is struggling to meet its monthly production growth target of 400,000 barrels per day (bpd).
“While there may be some gains from $90 and a slight drop in prices, this suggests they will not get any respite and we may see oil near $100 soon,” said Craig Erlam, senior market analyst at OANDA.
OPEC officials and analysts say oil’s rally may continue over the next few months and prices could reach $100 a barrel as demand improves despite the spread of the Omicron coronavirus variant.
Jim Ritterbush said, “Either way the numbers have come down, it appears that global inventories will continue for a few more months, with the balance in balance to keep this bull alive for the rest of this month and most of the next.” Will tighten up.” President of Ritterbus and Associates LLC in Galena, Illinois.
OPEC+, which forms the cartel group with Russia and other producers, is struggling to meet its monthly production growth target of 400,000 barrels per day (bpd).
“Unplanned outages in Libya, Ecuador and Kazakhstan, along with a drop in forecasts for the US, Russia and Brazil, are likely to result in 1 million bpd of short supply this month,” said Lewis Dixon, senior oil market analyst at Rystad Energy.
However, the International Energy Agency said the oil market was due to turn into a surplus in the first quarter as some producers prepared to pump at or above their all-time highs.
Crude oil stocks rose 1.4 million barrels during the week ended January 14.
An oil surplus should also build up in inventory, as the IEA reported that commercial stocks in OECD countries were at nearly seven-year lows well below pre-pandemic levels.
On Wednesday, President Joe Biden said at a news conference that he would work to try to increase oil supplies. The administration last year authorized the release of 50 million barrels of crude oil in a loan and sale mix from the country’s Strategic Petroleum Reserve when prices soared.
According to market sources citing data from the American Petroleum Institute on Wednesday, US crude and petrol stocks had declined last week.
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Crude stocks rose 1.4 million barrels for the week ended January 14. Petrol inventories rose by 3.5 million barrels, while distillate stocks declined by 1.2 million barrels, according to sources, who spoke on condition of anonymity.
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