Oil prices have soared, reaching their highest level in more than two months. This was driven by rising fuel demand and a decline in US crude oil inventories. As part of the production in the Gulf of Mexico is still recovering from the storm damage.
Brent crude futures rose $1.06, or 1.4%, to $77.25 per barrel. This is the highest price since mid-July.
WTI crude futures rose $1.07, or 1.5%, to close at $73.30 per barrel.
According to the US Energy Information Administration (EIA) report, crude oil inventories fell by 3.5 million barrels. Inventories are now at their lowest level since October 2018. As a result, both crude oil contracts rose by more than 2.5%.
Oil futures also got a boost from easing concerns about short-term bond defaults by Chinese property developer China Evergrande.
At the same time, oil prices were supported by the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+). OPEC+ earlier decided not to further increase oil production until the end of the year.
The dollar, which usually moves inversely to commodity prices, fell back from its one-month high after the Federal Reserve announced it would maintain the current monetary policy.
The price of natural gas has continued to rise worldwide in recent months. This is due to various factors, including rising demand, particularly from Asia, which has recovered from the COVID-19 outbreak. While natural gas inventories are low and gas supply from Russia is tight.
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Friday, September 24, 2021