Oil prices continue to rise as the global recovery continues

Mohammed Abdelkhalik
November 9, 2021
Oil prices

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Oil prices rose during the European market trading session today to continue its gains for the third day in a row, and this rise came thanks to the expectations of global demand for fuel, especially after the United States lifted travel restrictions and passed the infrastructure bill in the country, and prices also received more support recently. After strong data in China, “the second-largest oil consumer in the world”, in addition to other signs of economic recovery after the coronavirus pandemic.

Oil prices continue to rise

Oil prices

West Texas Intermediate crude “US crude” rose by about 0.4% until 09:50 GMT, to trade the price of a barrel around the level of 82.43 US dollars, from the opening level of today’s session at 82.10 dollars, and reached the lowest price at 81.80 dollars per barrel.

The international benchmark “Brent crude” also rose by more than 0.3% to the level of $83.94 a barrel, compared to the opening level of $83.66, and it recorded early in the session the lowest price at $83.19 a barrel.

At the conclusion of yesterday’s trading, US crude oil was able to achieve a gain of 1.1%, and the benchmark Brent crude also gained 1.6%, in the second consecutive daily gain. This rise came thanks to recovery operations from the lowest level in four weeks and after Saudi Arabia’s decision to raise crude export prices next December.

Aramco raises the price of light crude

On Friday, Saudi Aramco raised the official selling price for Arab Light crude to $2.7 next December, from $1.4 the current average price.

The move of the largest oil company in the world to increase export prices means that global demand is still strong and that the producers of the OPEC Plus alliance will not increase supplies to the market higher than predetermined levels.

Other than that, global oil prices are currently still receiving more support, especially after the recent decision issued last week by the Organization of Petroleum Exporting Countries “OPEC” and other major producers, including Russia, the group is known as “OPEC +”, not to accelerate the planned production increases, despite From continuing pressure from the administration of US President “Joe Biden” to increase supplies.

Biden had called on OPEC + to produce more crude during the coming period to calm the market and said on Saturday that his administration has other tools to deal with high oil prices.

In China, exports rose better than expected during last October, in a strong sign that the Chinese economy began to recover, which currently supports the recovery in fuel demand in the “second-largest oil consumer in the world.”

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.