Oil Prices heading higher - Sept 25
Posted: Sat Sep 25, 2021 8:27 am
OECD oil inventories falling will push Brent over $80.
Friday, September 24, 2021
Oil prices are heading for a third straight week of gains despite a slight downward correction on Friday, buoyed by ongoing supply disruptions in the United States and several OPEC+ countries (such as Nigeria and Angola) failing to increase production according to their production targets. The anticipated Chinese SPR sale turned out to be a marginal blip on the screen, with most of the discussion now focusing on countries’ capabilities and willingness to meet robust demand across the globe. As of Friday, global benchmark Brent traded around $77 per barrel, whilst WTI was most recently assessed at $73 per barrel. Barring the Hurricane Ida period, the Brent-WTI spread is at its widest since late March 2021.
Chinese SPR Sale Fails to Impress. Of the 7.3 MMbbls of crude on offer, only 4.4 MMbbls were allocated amongst two bidders, state-owned Petrochina (SHA:601857) and private refiner Hengli (SHA:600346). Despite them paying a relatively low price of $65 per barrel on all crudes except Upper Zakum, the desired effect of sending a strong signal to markets didn’t materialize.
Friday, September 24, 2021
Oil prices are heading for a third straight week of gains despite a slight downward correction on Friday, buoyed by ongoing supply disruptions in the United States and several OPEC+ countries (such as Nigeria and Angola) failing to increase production according to their production targets. The anticipated Chinese SPR sale turned out to be a marginal blip on the screen, with most of the discussion now focusing on countries’ capabilities and willingness to meet robust demand across the globe. As of Friday, global benchmark Brent traded around $77 per barrel, whilst WTI was most recently assessed at $73 per barrel. Barring the Hurricane Ida period, the Brent-WTI spread is at its widest since late March 2021.
Chinese SPR Sale Fails to Impress. Of the 7.3 MMbbls of crude on offer, only 4.4 MMbbls were allocated amongst two bidders, state-owned Petrochina (SHA:601857) and private refiner Hengli (SHA:600346). Despite them paying a relatively low price of $65 per barrel on all crudes except Upper Zakum, the desired effect of sending a strong signal to markets didn’t materialize.