BUSINESS Oil prices rise as energy remains tight


Oil prices rise as energy remains tight


07:23, October 20, 2021

File photo

NEW YORK, Oct. 19 (Xinhua) -- Oil prices climbed on Tuesday, driven by concerns over tight supplies.

The West Texas Intermediate for November delivery added 52 cents to settle at 82.96 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for December delivery increased 75 cents to close at 85.08 dollars a barrel on the London ICE Futures Exchange.

Both crude benchmarks were near their multi-year highs as the oil market is expected to remain tight for the time being.

"The restrictive production policy pursued by OPEC+ is partly responsible. The agreed increase in output by 400,000 barrels per day each month will not be enough as things currently stand to plug the gap between demand and supply," Carsten Fritsch, energy analyst at Commerzbank Research, said Tuesday in a note.

The OPEC and the IEA in their respective monthly reports last week saw oil market as being noticeably undersupplied in short term.

Traders are awaiting data on U.S. crude stockpiles as the U.S. Energy Information Administration is set to release its weekly petroleum status report on Wednesday.

Analysts surveyed by S&P Global Platts forecast the U.S. crude supplies to show a climb of 2 million barrels for the week ending Oct. 15.

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue