For the first time since 2018, Brent crude oil price rose above $ 82 per barrel
The cost of North Sea oil rose to a new high in almost three years. At the high of the day, futures for Brent rose by nearly 1% against the previous close. The price of lots for Brent crude oil for delivery in December at trading on October 5 rose above $ 82 per barrel, according to trading data on the London stock exchange ICE.
At the high of the day, a barrel of Brent rose to $ 82.02, adding 0.89% to the previous close. The last time the price of Brent crude rose above $ 82 was at trading on October 11, 2018. Since the beginning of 2021, Brent has been at the cost of 58%. WTI oil prices are also rising. At the auction on Tuesday, the November contract rose 0.7% to $ 78.18 per barrel.
Oil prices climbed to a three-year high after the OPEC + members decided at a meeting on Monday to adhere to the previously agreed plan to increase crude production by 400 thousand barrels per month.
The cartel decided not to change anything in its plan, which is mainly fair. By the end of the fourth quarter, against the background of a slowdown in global economic growth, we may face a situation when we will be completely level local oil deficit the market will become balanced.
According to oil trader Vitol, OPEC + policy will be the main factor influencing oil prices in the coming months is because the chances of a return of oil supplies from Iran this year are slim
and US shale oil producers are not investing enough to boost production quickly, Vitol Asia director Mike Mueller said Sunday.
The different dynamics of oil prices will by today’s data on oil reserves for the week from the American Petroleum Institute (API), said the bank analyst “St. Petersburg” Viktor Grigoriev. If stocks of raw materials in the US continue to grow, the rally in the oil market may stop, the expert warned. However, in the current environment, data on stocks is unlikely to lead to a fall in Brent futures to levels significantly below $ 80 per barrel, the analyst predicts.
Promsvyazbank considers the current level of oil prices to be overheated and does not see factors for consolidation above the 2018 highs, given the statistics on raw materials in the United States, the apparent slowdown in the Chinese economy, as well as the recent printing of strategic oil reserves in China and India. “We focus on the return price of Brent oil to $ 77-79 per barrel as the euphoria of speculators is exhausted.”
