June 16, 2024

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Crude oil closes heavily, backed by declining U.S. cargo

Crude oil closes heavily, backed by declining U.S. cargo

Oil futures contracts closed higher on Wednesday, the 20th. Although the rise in U.S. oil stocks opened with forecasts, assets generally performed positively and gained strength as a result as stocks fell. The energy crisis continues to drive the object – at least, for now. Ministers around the world have made their predictions about higher oil prices and demand.

WTI crude for December ended 1.19% ($ 0.98) at $ 83.42 on the New York Mercantile Exchange (Nymex), while Brent crude was up 0.87% ($ 0.74) at $ 85.82 per barrel on the InterContinental Exchange (ICE).

Contrary to forecasts by the U.S. Petroleum Corporation (API) and analysts, the U.S. Department of Energy (DEE) announced last week that U.S. stocks fell 431,000 barrels, still counting the dollar’s weakness against rivals.

Rhysstad Energy analyst Louis Dixon says energy supply problems have pushed commodity prices to record highs, but so far there has been no definitive response from countries to control the damage. Despite calls from the US and Japanese governments to increase supply, manufacturers are reluctant to do so in the short term and will have to deal with a new cut next year, when supply is expected to be in balance, Dixon says.

However, from Commercebank to Gorston Friedz, the price rally for energy sources is coming to an end. “Concerns that demand may be affected by higher prices appear to be growing,” he says. He added that China plans to face a sharp increase in the domestic coal market, adding that “this will put significant pressure on the country’s coal prices and shift the transition from fuel to oil.”

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Today, Iraq’s oil minister, Jaber Ali al-Louibi, estimated that the price of a barrel of goods will reach $ 100 in the first half of 2022, for the first time since 2014. More optimistically, President Russia announced in early November that the value of Vladimir Putin was “very possible” Bloomberg

Saudi Arabia’s Energy Minister Abdul Aziz bin Salman said users switching from gas to oil could be in need of 500,000 to 600,000 barrels (bpd) a day. According to a report from Reuters, The minister said the exchange depends on how severe the winter will be and how high energy prices will be at this time.