WORLD OIL PRICE

Oil prices rose, with Brent crude hitting its highest level in more than two months. The rise in oil prices was supported by rising demand for fuel and a drawdown in US crude inventories as production remained stalled in the Gulf of Mexico after two hurricanes.

Launching the investing.com page, Friday (9/24/2021), the price of Brent crude oil closed up USD 1.06, or 1.4 percent, to USD 77.25 per barrel. This is the highest price since mid-July. Meanwhile, US West Texas Intermediate (WTI) crude oil prices rose $1.07, or 1.5 percent, to $73.30 per barrel.

"Supply concerns are keeping funds taking longer positions," analysts said.

That being said if the truth is happening - there's more talk of tightening global inventories and there's concerns about supply issues going into the winter," said Phil Flynn, Senior Analyst at Price Futures Group in Chicago.

He added additional support may come as the White House takes a tougher line against Iran.

On Wednesday, both oil-price contracts jumped 2.5 percent after the U.S. Energy Information Administration reported U.S. crude stockpiles in the week to September 17 fell 3.5 million barrels to 414 million — their lowest since October 2018.

Also supporting prices, some members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies are struggling to increase output after years of underinvestment or delays in maintenance work during the pandemic.

On Wednesday, Iraq's oil minister said OPEC+ was working to keep crude near $70 a barrel as the global economy recovered. The group will meet on October 4.

Iran's export capabilities depend in part on reviving its 2015 nuclear deal. "The window remains open but Tehran has not indicated whether it is willing to resume talks in Vienna," a senior US official said.

New York - Oil prices rose, with Brent crude hitting its highest level in more than two months. The rise in oil prices was supported by rising demand for fuel and a drawdown in US crude inventories as production remained stalled in the Gulf of Mexico after two hurricanes.

Launching the investing.com page, Friday (9/24/2021), the price of Brent crude oil closed up USD 1.06, or 1.4 percent, to USD 77.25 per barrel. This is the highest price since mid-July.

Meanwhile, US West Texas Intermediate (WTI) crude oil prices rose $1.07, or 1.5 percent, to $73.30 per barrel.

"Supply concerns are keeping funds taking longer positions," analysts said.

That being said if the truth is happening - there's more talk of tightening global inventories and there's concerns about supply issues going into the winter," said Phil Flynn, Senior Analyst at Price Futures Group in Chicago.

He added additional support may come as the White House takes a tougher line against Iran.

On Wednesday, both oil-price contracts jumped 2.5 percent after the U.S. Energy Information Administration reported U.S. crude stockpiles in the week to September 17 fell 3.5 million barrels to 414 million — their lowest since October 2018.

Also supporting prices, some members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies are struggling to increase output after years of underinvestment or delays in maintenance work during the pandemic.

On Wednesday, Iraq's oil minister said OPEC+ was working to keep crude near $70 a barrel as the global economy recovered. The group will meet on October 4.

Iran's export capabilities depend in part on reviving its 2015 nuclear deal. "The window remains open but Tehran has not indicated whether it is willing to resume talks in Vienna," a senior US official said.

The dollar, which typically has an inverse relationship with commodity prices, fell from a one-month high.

This comes after the Federal Reserve signaled it would soon start reducing monthly bond purchases and set higher interest rates next year, while leaving room for slowing. things if needed.

The US central bank "provided advance notice of its reduction intentions, thus confirming its economic optimism, which ultimately suggests strong US oil demand," said Barbara Lambrecht, analyst at Commerzbank.

Oil prices also found support as concerns eased over a possible short-term default by Chinese property developer China Evergrande on its dollar bonds.

In a sign of strengthening fuel demand, the United States' East Coast refinery utilization rate rose to 93 percent, the highest since May 2019, EIA data showed. The surge in natural gas prices also supported market sentiment, said ANZ Research.

"Gas supply shortages could prompt electric utilities to switch from gas to oil if winter turns colder this year," ANZ analysts wrote in a note.

Natural gas prices have surged worldwide in recent months due to factors including increased demand especially from Asia as it recovers from the pandemic, low gas supplies and tight gas supplies from Russia.