Oil prices continue to rise due to fears of falling US supplies

Last Updated on September 14, 2021

Oil prices continued to rise at the beginning of the week’s trading in the European market to record its second consecutive gain and its highest level in two weeks, as fears increased over the delay in US oil supplies in the wake of Hurricane Ida, which caused severe damage to offshore oil facilities, as oil prices boosted the organization’s report. OPEC monthly for its expectations of global demand rates.

Oil prices hit their highest level in two weeks

West Texas crude oil traded at $70.46 a barrel, the highest in two weeks, up by 1.3% from the opening price of today’s session at $69.58, and Brent crude traded at $73.66 a barrel, recording its highest level in two weeks, up by 1.0% from the opening price of the session Today at $72.93.

At the end of trading last Friday, West Texas crude recorded gains of about 2.5%, and Brent crude achieved gains of 2.3%, in the first daily gain in three days, as fears escalated over the repercussions of Hurricane Ida on American oil supplies.

Last week, oil prices recorded the third consecutive weekly gain, with gains estimated at about 0.5%, supported by the continued improvement in global demand rates from the United States, China and India.

Fears are increasing in the markets due to the damage caused by Hurricane Ida, as about 75% of American oil supplies are still in good condition, and the market has lost about 1.4 million barrels of American production in the Gulf of Mexico since the end of last August, and producers in the United States are struggling to return the platforms To work and operate less than two weeks after the hurricane, which left a lot of damage, as it was accompanied by strong winds and heavy rains that the country has not witnessed for decades.

OPEC raises its forecast for global demand

On the other hand, the Organization of Petroleum Exporting Countries (OPEC) raised its expectations for global demand rates for oil, an aspect that boosted crude oil prices, as OPEC revised its demand estimates to 100.8 million barrels per day next year, compared to pre-pandemic levels of 100.3 barrels per day.

In the upcoming report, the organization expressed optimism that global oil demand will return to 2019 levels throughout the entire year, compared to its previous expectations when it expected that it will reach pre-pandemic levels in the second half of next year. This optimism comes from market confidence that Countries will improve their management of the Covid-19 epidemic, and this aspect is likely to lead to an expected increase in vaccination rates around the world, which will result in a further recovery of the travel sector.

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