The Oil Derrick Pump is operating in the Inglewood field in Culver City, California on Sunday, July 11, 2021.
Kyle Grilot | Bloomberg | Getty Images
International Oil Benchmark Brent crude It surged during early trading on Tuesday morning, surpassing $ 80 a barrel for the first time since October 2018, then reversed these rises and fell into the negative territory. Breather came after five consecutive positive sessions on oil and recovered, supported by a recovery in demand as supply remained tight.
West Texas Intermediate Crude Oil FuturesThe US oil benchmark hit a two-month high of $ 76.67 per barrel before pulling back. The deal finally fell 0.8% to trade at $ 74.86 per barrel.
Both WTI and Brent have risen for the fifth straight week, rising more than 50% each in 2021.
Barclays analysts said in a note to customers Tuesday that “sustainable supply shortages will lead to tight oil markets and OECD inventories are likely to reach the end of the year with the lowest level of demand coverage in decades. “. The company has raised its 2022 WTI and Brent targets to $ 74 and $ 77 per barrel, respectively.
Brent was finally traded at $ 78.80 a barrel, down 0.9%. Goldman Sachs expects contracts to reach $ 90 by the end of the year as demand continues to recover. The company raised its target to $ 90 on Sunday after forecasting Brent to be $ 80 by the end of the year.
In April 2020, the pandemic reduced global demand for petroleum products and WTI temporarily entered a negative territory, causing producers to implement historic production cuts. OPEC and its allies are removing about 10 million barrels a day from the market, and members are still refraining from production while the group slowly opens the faucet.
A similar story in Wells, USA, was closed and producers took time to start production. Instead, they have focused on strengthening their balance sheets, paying off debt, and returning money to shareholders.
Since then, demand has recovered during the large-scale deployment of vaccines, but supply remains constrained. This is especially true after years of underinvestment in this sector.
Oil is also being boosted by the spectacular rise in natural gas prices, which could encourage utilities to switch from gas to oil.
Natural gas futures At some point on Tuesday, it surged more than 9% to $ 6.26 per million British thermal units. This is the highest level in at least 7.5 years. Contracts for September are now up more than 40%, inventories are below historical levels and heading into winter.
Ed Morse, Global Head of Commodities at Citi, said: “Therefore, unless winter weather turns out to be mild, prices should remain at current highs worldwide in the coming winter, and further price spikes caused by much colder than normal weather. There is a possibility of. “
The energy sector is by far the best S & P 500 group in September, with an increase of more than 10%. The second best sector is finance, up only 1%.
NS Energy Selection Sector SPDR Fund It managed to maintain its profits and rose 0.5% on Wall Street at 11:30 am.
Did you enjoy this article?
Exclusive Stock Selection, Investment Ideas, CNBC Global Live Stream
Apply CNBC Pro
Let’s get started with you Free trial now
Brent crude jumps above $ 80 to a nearly three-year high before it hits negative
Source link Brent crude jumps above $ 80 to a nearly three-year high before it hits negative
The post Brent crude jumps above $ 80 to a nearly three-year high before it hits negative appeared first on Eminetra.