Oil prices continued to rise for the fourth consecutive day due to global supply concerns following two hurricanes in the United States, but the first sale of government crude reserves in China temporarily limited this rise. Brent crude rose 12 cents, or 0.2%, to $77.37 a barrel, close to its highest settlement since 2018.
The price of US oil rose six cents, or 0.1%, to $ 73.36 a barrel, after closing up 1.5% in the previous session, its highest level since the beginning of last August. And US Energy Information Administration data this week showed that stocks fell to their lowest levels in nearly three years after damage from two hurricanes sent clouds high in the United States. Crude oil stocks from Europe to the United States have shrunk, even as OPEC+ added more supply, with demand for oil products for power generation expected to rise, after natural gas prices soared ahead of the northern hemisphere winter. OPEC said global crude consumption could rise by an additional 370,000 barrels per day, if natural gas remains elevated for an extended period.
Oil recently rose after a period of demand uncertainty due to the rapid spread of the delta variant of the coronavirus, as some of the world’s largest traders and banks predicted that prices could rise further due to the energy crisis. Vitol Group CEO Russell Hardy said that oil is likely heading above $80 a barrel, due to higher natural gas prices, while Goldman Sachs expects crude oil could rise to $90 if a colder-than-normal winter sets in.