Supported by the scarcity of American supplies and the “Biden-Bing” call
Oil is advancing towards $73...and the impact of Hurricane Ida remains
US crude stocks fall to their lowest level since September 2019. Getty
Oil rose towards $73 a barrel yesterday, Friday, supported by increasing indications of tight supplies in the United States, as a result of Hurricane Ida, at a time when hopes of trade between the United States and China boosted appetite for high-risk assets.
And still about three-quarters of offshore oil production in the US Gulf region, or about 1.4 million barrels per day, has been suspended since late August.
Figures this week showed US crude stocks fell to their lowest level since September 2019.
"With the delay in the resumption of offshore crude production, the possibilities indicate that the impact of Hurricane Ida will continue to exist in the coming weeks," said Stephen Brennock of BVM Oil Brokerage.
"Brent crude" rose $1.20, or 1.7%, to $72.65, while "West Texas Intermediate" crude reached $69.19, an increase of $1.05, or 1.5 percent.
Oil and stock markets also got a boost from news of a phone call between US President Joe Biden and his Chinese counterpart Xi Jinping, which analysts said raised hopes for warmer relations and more global trade.
It is noteworthy that “Brent crude” is on its way to end the week with slight gains, as it rose about 40% this year, driven by supply cuts adopted by the Organization of Petroleum Exporting Countries “OPEC”, and demand recovered somewhat from the impact of the Corona virus “Covid-19” pandemic.
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