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Oil continues to rise at the beginning of the new week, reaching consecutive multi-year price peaks, as problems with global supply of black gold continue amid strong demand for fuel in the United States and much of the rest of the world due to the recovery of the global coronavirus economy. crisis and loose anti-epidemic travel measures.
Brent oil futures for delivery in December rose at the beginning of today’s trading by about 1% to a new three-year high of $ 86.43 per barrel – the highest price level since October 2018 and looking at the price peak since September 2018. about $ 86.74 a barrel.
December futures for US light crude WTI also rose nearly 1% to $ 84.76 a barrel – the highest price level since October 2014.
The upward movement is a fact after the last consecutive week of price growth, during which Brent oil rose by another 0.9%, and US light crude oil – by as much as 2.6%, rising for a record ninth consecutive week.
After more than a year of declining fuel demand, gasoline and petroleum distillate consumption in the United States is again in line with five-year averages, with the United States itself the world’s largest fuel consumer.
At the same time, however, U.S. energy companies cut active oil and gas production platforms last week for the first time in seven weeks, despite rising oil prices, energy services company Baker Hughes Co. announced Friday. According to her report, the number of operating oil wells in the United States has dropped by two to a total of 443 in the last week.
Investment managers increased the volume of their purchased net “long positions” in oil futures and options during the week to October 19, announced the US Commodity Futures Trading Commission (CFTC), which only highlighted strong market sentiment for continued price increases .
High oil prices continue to be supported by concerns about coal and natural gas shortages in China, India and Europe, which has stimulated the shift of various energy producers to diesel and fuel oil for electricity generation.
Analysts, however, warn that there may be some downward adjustments in the coming weeks, as the sharp rise in crude oil prices has led to a growing sense of caution.
Despite such possible downward adjustments, more and more analysts and economists predict that oil prices will reach $ 100 a barrel.
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