Oil rose towards $84 a barrel on Nov. 9, gaining for a third session, as the U.S. lifting of travel restrictions and more signs of a global post-pandemic recovery lifted the demand outlook, while supply remained tight.
On Nov. 8, travelers took off for the United States again, while the passing of U.S. President Joe Biden's infrastructure bill and better-than-expected Chinese exports helped paint a picture of a recovering global economy.
Brent crude rose 31 cents, or 0.4%, to $83.74 a barrel by 1150 GMT, after gaining 0.8% on Nov. 8. U.S. oil advanced 36 cents, or 0.4%, to $82.29, also after a 0.8% rise the previous day.
"With the re-opening of U.S. borders for vaccinated travelers, jet fuel demand ought to receive a healthy...boost," said Tamas Varga of oil broker PVM.
"The passage of the $1 trillion U.S. infrastructure bill in Congress is also expected to provide additional help."
The price of Brent has risen over 60% this year and hit $86.70, a three-year high, on Oct. 25, supported by supply restraint by OPEC+ and recovering demand.
At a meeting last week, OPEC+ decided to stick to its existing pace of easing of record output cuts and rebuff U.S. pleas to pump more—helping to keep supply tight for the near term in the view of some analysts.
JPMorgan Chase said global demand for oil in November was already nearly back to pre-pandemic levels of 100 million barrels per day, following last year's collapse.
Biden, however, may take measures as early as this week to address soaring gasoline prices, U.S. Energy Secretary Jennifer Granholm said on Nov. 8.
Despite a tight global market, U.S. crude inventories are expected to have risen for a third straight week, possibly helping to cap further gains in prices.
The first of this week's two supply reports, from industry group the American Petroleum Institute, is due at 2030 GMT.
Recommended Reading
Lake Charles LNG Selects Technip Energies, KBR for Export Terminal
2024-09-20 - Lake Charles LNG has selected KTJV, the joint venture between Technip Energies and KBR, for the engineering, procurement, fabrication and construction of an LNG export terminal project on the Gulf Coast.
Macquarie Sees Potential for Large Crude Draw Next Week
2024-09-19 - Macquarie analysts estimate an 8.2 MMbbl draw down in U.S. crude stocks and exports rebound.
EIA Reports Natural Gas Storage Jumped 58 Bcf
2024-09-19 - The weekly storage report, released Sept. 19, showed a 58 Bcf increase from the week before, missing consensus market expectations of 53 Bcf, according to East Daley Analytics.
Electrification Lights Up Need for Gas, LNG
2024-09-20 - As global power demand rises, much of the world is unable to grasp the need for gas or the connection to LNG, experts said.
Woodside to Maintain at Least 50% Interest in Driftwood LNG
2024-09-18 - Australia’s Woodside Energy plans to maintain at least a 50% interest in the 27.6 mtpa Driftwood LNG project that it's buying from Tellurian, CEO Meg O’Neill said during a media briefing at Gastech in Houston.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.