Crude oil prices continue to rise in Asia this evening. This maintains the upward trend after the Chinese government said it is looking for ways to curb coal prices, which have reached a record high. This includes running coal mines at full capacity to alleviate the problem of energy shortages.
Brent crude futures are up 0.05% to $85.18 by 10:37 PM ET.
WTI crude futures were up 0.27% to $82.67.
Prices for Chinese coal and other commodities slumped on Asian markets this afternoon, while crude oil continued its upward trend.
Oil prices hit multi-year highs earlier this week due to global coal and gas shortages. This is encouraging the switch to diesel and heating oil for power generation.
According to analysts, China’s coal production will eventually have to be increased to solve the energy problem.
China’s National Development and Reform Commission (NDRC) is discussing government intervention in coal prices, including controlling the coal mine to operate at full efficiency to achieve production of 12 million tons per day, an increase of more than 1.6 million tons from the end of September 2021.
In the week ended October 15, crude oil inventories in the U.S. increased by 3.294 million barrels, according to the API.
The U.S. Energy Information Administration (EIA) reported today that U.S. crude oil inventories declined more than expected last week.
Crude oil inventories decreased by 431,000 barrels.
Inventories of refined oil, diesel, and fuel oil, decreased by 3.913 million barrels.
Gasoline inventories decreased by 5.368 million barrels.