WTI Oil Price increased 11% in October
Posted: Sat Oct 30, 2021 8:46 am
Trading Economics:
"WTI crude futures reversed earlier losses to settled 0.9% higher at 83.57 per barrel in the last session of October, close to a seven-year high of $85.41 hit on Monday, on expectations that OPEC+ would maintain production cuts during next Thursday’s meeting. For the month, oil prices jumped more than 11%, as demand received a boost from a double whammy of coal and natural gas shortages in Europe and Asia, while OPEC+ nations kept supplies tight. The oil producer group sees world oil inventories declining by an average of 1.1 million barrels a day until the end of the year. Still, concerns about a larger-than-expected addition in US crude oil inventories last week and a likely return of Iranian oil to the markets, caused the contract to fall about 0.6% on a weekly basis, snapping a nine consecutive weekly rally."
OECD petroleum inventories will continue to fall thru year-end. Q1 is the seasonal low point for oil demand. Global oil demand ramps up quickly in Q2, usually be ~2 million bpd each year. By the end of Q2, OPEC+ will probably be out of spare capacity. At that point the only option is to ration oil by price.
"WTI crude futures reversed earlier losses to settled 0.9% higher at 83.57 per barrel in the last session of October, close to a seven-year high of $85.41 hit on Monday, on expectations that OPEC+ would maintain production cuts during next Thursday’s meeting. For the month, oil prices jumped more than 11%, as demand received a boost from a double whammy of coal and natural gas shortages in Europe and Asia, while OPEC+ nations kept supplies tight. The oil producer group sees world oil inventories declining by an average of 1.1 million barrels a day until the end of the year. Still, concerns about a larger-than-expected addition in US crude oil inventories last week and a likely return of Iranian oil to the markets, caused the contract to fall about 0.6% on a weekly basis, snapping a nine consecutive weekly rally."
OECD petroleum inventories will continue to fall thru year-end. Q1 is the seasonal low point for oil demand. Global oil demand ramps up quickly in Q2, usually be ~2 million bpd each year. By the end of Q2, OPEC+ will probably be out of spare capacity. At that point the only option is to ration oil by price.