- NEW YORK (Reuters) -Oil rose to briefly top $73 a barrel on Friday, supported by growing signs of supply tightness within the us as a results of Hurricane Ida and as U.S.-China trade hopes gave riskier assets a lift .
- About three quarters of the U.S. Gulf’s offshore boring , or about 1.4 million barrels per day, has remained halted since late August. that’s roughly adequate to what OPEC member Nigeria produces.
- “The market is back to that specialize in the tighter supply situation globally, which is giving it a lift ,” said Phil Flynn, senior analyst at Price Futures group in Chicago. While China is releasing oil from its strategic petroleum reserve, the quantity is quite offset by reduced production within the Gulf of Mexico, Flynn added.
- Brent crude rose to settle at $1.47, or 2.3%, to $72.92. The session high was $73.15 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.58, or 2.3%, to $69.72.
- Both grades posted alittle gain on the week. Brent has rallied 41% this year on supply cuts by the Organization of the Petroleum Exporting Countries and a few demand recovery from the pandemic.
- Oil and equity markets also got a lift from news of a call between U.S. President Joe Biden and his Chinese counterpart Xi Jinping. the decision raised hopes for warmer relations and more global trade, analysts said. [MKTS/GLOB]
- “The Biden-Xi call has had an equivalent effect on oil markets because it has on other asset classes,” said Jeffrey Halley, analyst at brokerage OANDA.
- The us added rigs within the latest week, energy service provider Baker Hughes said, indicating production may rise in coming weeks.
- On Thursday, both crude contracts fell quite 1% after China said it might release petroleum reserves https://www.reuters.com/business/energy/china-release-state-crude-oil-reserves-first-time-2021-09-09 via public auction to assist ease high feedstock costs for refiners.
- In focus next week are going to be revisions to the oil demand outlook for 2022 from OPEC and therefore the International Energy Agency. OPEC will likely revise down its forecast on Monday, two OPEC+ sources said.
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