Brent crude futures rose $2.94, or 3.1%, to settle at $96.59 a barrel, while US West Texas Intermediate crude rose $2.39, or 2.7%, to settle at $90.50.
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Increased fuel consumption in America and expectations of tight supplies raise oil 3% at closing
Oil prices rose nearly 3% on Thursday, as positive US economic data and strong US fuel consumption eased fears that slowing economic growth in other countries might undermine demand.
Brent crude futures rose $2.94, or 3.1%, to settle at $96.59 a barrel, while US West Texas Intermediate crude rose $2.39, or 2.7%, to settle at $90.50.
Prices rose more than 1% in the previous session, despite the fact that Brent fell during those trading to its lowest level since February, with increasing indications of an economic slowdown in some areas.
“Oil prices rose following another round of impressive US economic data, which fueled optimism for an improvement in the demand outlook for crude oil,” said Edward Moya, chief market analyst at data and analytics firm Oanda.
Moya also indicated that OPEC would not allow the recent decline in oil prices to continue much longer.
Meanwhile, the new Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, told Archyde.com that policy makers, legislators, and insufficient investment in the oil and gas sector are all responsible for high energy prices, not the organization.
Al-Ghais said that “OPEC +”, which includes other oil suppliers such as Russia, may resort at its next meeting in September to “reduce production if necessary, and we can increase it if necessary… It all depends on how things develop.”
Crude prices received support from data from the US Energy Information Administration, which showed a decline in US stocks by 7.1 million barrels in the week ending August 12, compared to expectations for a decrease of 275,000 barrels, while exports amounted to five million barrels per day, which is the highest level. Absolutely.
Analysts warn that the ban imposed by the European Union on Russian crude transported by sea, starting in December, and on imports of products early next year, may lead to a significant reduction in supplies and to raise prices.
However, at the present time, Russia has begun to gradually increase oil production, following restrictions related to sanctions, and with Asian buyers increasing purchases, which prompted Moscow to raise its forecast for production and exports until the end of 2025, according to a document of the Ministry of Economy seen by “Archyde.com”. .
Russia’s revenue from energy exports is expected to rise 38% this year, partly due to higher oil exports, according to the document, indicating that supplies from the country have not been affected as much as markets initially expected.
Oil prices rose despite a possible increase in supplies from Iran, fears that demand might fall if China imposes more lockdowns to stem the spread of COVID-19, along with slowing economic growth as central banks raise interest rates to control hyperinflation.
The market is awaiting the latest outcome of talks to revive the Iranian nuclear deal with world powers, which might lead to an increase in Iranian oil exports by regarding one million barrels per day.
