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Oil rises in anticipation of high natural gas to drive heating switches

File Photo: June 27, 2011 Gas pump at a gas station in Seoul. REUTERS / JoYong-Hak / File Photo

October 14, 2021

Yuka Obayashi

Tokyo (Reuters) -Thursday oil prices rose, reversing previous losses. Higher natural gas prices as winter approaches may facilitate the switch to oil to meet the needs of heating demand.

Brent crude oil futures rose 28 cents (0.3%) at 0107 GMT to $ 83.46 a barrel after falling 0.3% on Wednesday.

Crude oil futures on West Texas Intermediate (WTI) rose 22 cents (0.3%) to $ 80.66 a barrel after falling 0.3% the day before.

Hiroyuki Kikukawa, Research General Manager of Nissan Securities, said:

Prices were supported by concerns over tight supply after the Energy Information Administration (EIA) announced on Wednesday that US crude oil production, the world’s largest producer, would be lower than previously predicted in 2021. rice field. In 2022.

“The current tight oil market and short-term outlook for seasonal demand have boosted investor sentiment, surpassing US crude oil inventories and weakening OPEC’s demand forecast,” Kikukawa said. There are. ”

The American Petroleum Institute (API) said late Wednesday that US crude oil reserves increased by 5.2 million barrels during the week ending October 8, according to market sources who looked at API data.

The API also reported that gasoline inventories fell by 4.6 million barrels and distillate inventories fell by 2.7 million barrels.[API/S]

Reuters analysts expect oil inventories to increase by 700,000 barrels.[EIA/S]

The Organization of Petroleum Exporting Countries (OPEC) has adjusted its forecast for global oil demand growth in 2021 in its latest monthly report on Wednesday, maintaining its view of 2022.

However, a group of producers said rising natural gas prices could boost demand for petroleum products as end users switch fuels.

EIA will release an inventory report on Thursday at 11:00 am EDT (1500 GMT).

(Report by Yuka Obayashi, edited by Christian Schmoringer)



Oil rises in anticipation of high natural gas to drive heating switches

Source link Oil rises in anticipation of high natural gas to drive heating switches

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