Global benchmark Brent crude was up $91.11 a barrel, up $1.64, or 1.8%, while West Texas Intermediate crude rose $2.01, or 2.3%, to $90.27 a barrel, the first time the US benchmark has closed above the $90-level. . From 6 October 2014.
Oil prices jumped in trading late on Thursday, with the US crude benchmark passing through $90 a barrel for the first time since 2014 amid ongoing supply concerns and as cooler weather cascades across the United States. Global benchmark Brent crude was up $91.11 a barrel, up $1.64, or 1.8%, while West Texas Intermediate crude rose $2.01, or 2.3%, to $90.27 a barrel, the first time the US benchmark has closed above the $90-level. . Since October 6, 2014. Analysts attributed the late rally to growing concerns that extended cold weather could hit production in Texas, adding strength to world crude markets.
More than 200,000 people have lost power across the United States because of the cold so far, and memories of Storm Ida a year ago that knocked millions of Texans out of power still haunt the fore. “It’s hysteria or a kind of fear,” said Bob Yeager, director of energy futures at Mizuho. “In the last hour, the matter (oil) has started to rise.” The market was also watching developments between Russia and the West regarding the East’s aggressive stance towards Ukraine.
The United States warned that Russia was planning to use a staged attack as a justification for invading the neighboring nation. Russian President Vladimir Putin has blamed NATO and the West for escalating tensions, even as he moved thousands of troops near the border with Ukraine. “The tensions surrounding the Ukraine conflict are providing support, and our global demand is rising and we’re not really ramping up supply to meet that,” said Gary Cunningham, director of market research at Tradition Energy.
OPEC+ agreed to stick to a monthly increase of 400,000 barrels per day (bpd) in output despite a sharp increase in supply despite pressure from consumers
Crude benchmarks have been pointing higher for weeks on hopes that supplies will tighten even after OPEC+ producers’ planned moderate output increases. Demand is on the rise, with the Omicron coronavirus variant only temporarily denting consumption in major economies. The Organization of the Petroleum Exporting Countries and Allies, known as OPEC+, led by Russia this week on a monthly increase of 400,000 barrels per day (bpd) in production despite pressure from consumers to increase supply more quickly. Agreed to stay.
Analysts at Goldman Sachs expect Brent to hit $100 a barrel in the third quarter. The brokerage had predicted that OPEC+ may consider sharply ending its production cuts. Many OPEC members are struggling to pump more even though prices are at a seven-year high. Iraq pumped 4.16 million bpd of oil in January, well below its limit of 4.28 million bpd under the OPEC+ deal, data from state-owned marketer Somo seen by Reuters showed.
Analysts view United States production as a salve, although production has fallen to 11.5 million bpd in recent weeks, and is far from the 2019 record of 12.3 million bpd, according to federal data. However, ConocoPhillips chief executive Ryan Lance said higher prices could cause US oil producers to ramp up production too quickly, leading to more supplies.
“If we’re getting back to the level of growth in the US” compared to the 2014-2015 shale boom, Lance said, and “you’re not worried about that, you should be,” he told investors during a conference call. said.
0 notes
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
for the latest auto news And AnalysisFollow carandbike.com Twitter, Facebookand subscribe to us youtube Channel.