Crude oil grows with rising energy demand

Highlights

  • Crude oil prices rose on Thursday.
  • Crude oil prices are supported by the increase in natural gas prices.
  • OPEC+ has decided to stick to its previous agreement to increase production by 400,000 barrels per month.

Crude oil prices rose on Thursday after Saudi Arabia rejected a call for additional OPEC+ supplies. According to the International Energy Agency (IEA), the increase in natural gas prices, which led to the use of oil from gas in the power generation sector, also increased prices. Brent Crude oil futures for December delivery were last traded at US$84.48, down 0.36%, while WTI crude oil futures for November delivery fell 0.54% to US$81.77 per barrel on 15 October 2021 at 11 pm. :52 Traded on AEDT.

Increasing energy demand

According to the IEA, oil demand is expected to increase by about half a million barrels per day as industries and the global energy sector shift from a relatively more expensive energy source to crude oil.

In its monthly report, the agency increased its forecast for global oil demand in 2022 by 210,000 barrels and forecasts oil demand to be 99.6 million barrels per day next year.

OPEC

OPEC | Source: © Gumpapa | megapixl.com

At this month’s meeting, OPEC and its allies decided to stick to their previous agreement to increase production by 400,000 barrels per month, together known as OPEC+.

Additionally, US crude inventories rose spectacularly to 6 million barrels, above the 702,000 barrel increase analysts had expected.

US shale producers have been reluctant to invest in boosting production after years of weak returns. The EIA said production will pick up to 11.7 million barrels per day in 2022.

As a result

Crude oil prices rose on Thursday, driven by increased demand for oil rather than rather expensive energy sources, particularly in the power generation sector.

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