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Oil & gas
Oil price: More gains & supplies reboot following Hurricane Ida impact – Oil and gas News
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By EntekHub.com - Posted on
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Oti Francis
On today’s oil and gas news, oil price reached above $70 per barrel in New York as supplies gradually resumed in the Gulf of Mexico and recovery solidified for more demand and inventories this last quarter.
The crude mix West Texas Intermediate gained 1%, while the global Brent benchmark brushed the top of its recent trading range.
For over fourteen days since the ravaging impacts of Hurricane Ida on the U.S. Gulf of Mexico, crude output has slowed in major producing regions. According to the Bureau of Safety and Environmental Enforcement, most of these areas are still yet to resume activities.
Investors and traders also anticipate more import quotas for Chinese private refiners. This is expected to jolt trade in the physical market back to life in days to come. Just last week, permission was given to a company to commence import of designated crude volume. The market is also that such quotas are given to more refiners.
Amidst the OPEC+ alliance to slowly restore crude production, and China’s release of its crude stockpiles, crude is expected to regain growing demand above supply soon, according to the Goldman Sachs Group Inc.
Analyst at PVM Oil Associates Stephen Brennock, “The broader global oil-demand picture is showing signs of normalizing on the back of rising mobility trends.” He is confident that the OPEC+ alliance is actively agile in playing market regulator when it comes to supply and tightening the market before 2021 elapses.
Prices:
- WTI rose 1% to $70.40 a barrel at 10:40 a.m. in London
- Brent advanced 0.9% to $73.60 a barrel
The impact from Hurricane Ida has stalled about 1.1 million barrels of daily production in the Gulf of Mexico. Reports are also vague on when these units will return. According to trading giant Vitol Group, it is a bullish sign for oil.
While stockpiles in developed economies are lower, COVID19 remains a huge threat. In Asia alone, China is battling the delta variant. Multiple cases have been reported in the southeastern province of Fujian not up to thirty days since economic power contained its last outbreak.
EnergyHub Oil and Gas News.
Credit: Bloomberg, Word Oil.