The Magazine for Asian Investors
Crude oil prices rose to near three-year highs. This was mainly due to global production disruptions and inventory declines.
Brent crude oil rose 1.04% to $78.06 per barrel, almost reaching the highest level since October 2018.
WTI crude oil rose 0.93% to $73.98 per barrel. This is the highest level since the beginning of August.
Oil prices were driven up by the significant disruptions to oil production on the US Gulf Coast following Hurricane Ida. It will take several months for oil stocks in the USA to recover. Royal Dutch Shell has already stated that repairs to the West Delta-143 (WD-143) offshore facilities will likely continue through the end of the year.
U.S. refiners have turned to Iraqi and Canadian oil as a substitute for Gulf of Mexico crude.
Some members of the Organization of Petroleum Exporting Countries OPEC and the OPEC+ Alliance are struggling to increase production. Due to low investment and delays in maintenance amid the COVID-19 pandemic.
In addition, analysts predicted that the Brent oil price could reach $80 per barrel by the end of September. This is due to lower OPEC production coupled with rising demand in Asia.
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Saturday, September 25, 2021