Oil prices continue to rise and have already reached a 7-year high
Oil prices continue to rise, and over the past two sessions, December Brent crude futures on London ISE have risen by 1.6% to 8 85.74/barrel, and WTI crude oil - by 2.2% to.83.5/barrel, which is a 7-year high. The increase in prices is due to an increase in oil consumption forecasts by 500 thousand barrels /day due to high gas prices, as well as an unexpected decrease in reserves in the United States.
The International Energy Agency in its monthly report noted that the global natural gas crisis has spread to the oil market, which in the coming months may lead to an increase in crude oil consumption by 500 thousand barrels /day. Additionally, the market supports demand growth in India, which is the world's third-largest consumer of oil. In September, fuel sales in India increased and exceeded the level of "docked" September 2019 by 8.8%.
According to the weekly report of the US Energy Association (EIA), oil reserves decreased by 431 thousand barrels, although experts expected them to grow by 2 million barrels, and gasoline reserves decreased by 5.37 million barrels to a nearly two-year low, despite expectations of 2.75 million barrels. As of October 15, US crude oil inventories were 6.1% lower than the seasonal 5-year average, and oil production for the week decreased by 0.9% to 11.3 million barrels/day, which is 13.7% lower than in February 2020.
According to the Baker Hughes news agency, during the week ended October 15, the number of active oil rigs in the United States increased by 12 installations to the largest in the last 1.5 years – 445 units.
Global reserves of crude oil stored on oil tankers (standing for at least 7 days) for the specified week increased by 0.6% to 101.46 million barrels.
Gas prices at Europe'S main hub TTF after reaching a record $ 1,970 per 1,000 m3 dropped to 1 1,101 per 1,000 m3 thanks to the warm weather.
Russia openly declares that it is ready to increase gas supplies to Europe, but only if it receives permission from Germany and the EU government for transit via Nord Stream 2. If this permit is obtained, the decline in gas prices will accelerate.
