London — Oil rose more than 1% on Monday, supported by concerns over US production outages due to the damage of Hurricane Aida. Analysts expect prices to remain range bound in a stable market over the next few months.
By 1049 GMT, Brent crude rose 90 cents (1.2%) to $ 73.82 a barrel, and West Texas Intermediate (WTI) crude rose 99 cents (1.4%) to $ 70.71.
Brent has held $ 70 to $ 74 a barrel over the past three weeks.
“Oil prices may not have much room to rise in the short term, but at the same time they are not expected to plummet immediately,” said Stephen Brenock, a broker PVM.
The Energy Information Administration (EIA) announced last week that it expects Brent prices to remain close to current levels for the rest of 2021.
“The market needs to go beyond the very short term to clarify the effects of the virus,” said Howie Lee, an economist at OCBC Bank in Singapore.
Prices still have some support from the impact of hurricane Ida on US production. About three-quarters of the Gulf of Mexico’s offshore oil production, or about 1.4 million barrels per day, has remained suspended since late August.
Goldman Sachs analysts said in a note dated September 9, “Hurricane Ida is unique in that it has a net bullish impact on the US and global oil balances, with less impact on demand than production. It was. “
However, the number of rigs operating in the United States increased last week, said energy service provider Baker Hughes, indicating that production could increase in the coming weeks.
Supply risk is in China’s It remains from the planned release of oil from strategic stockpiles. Keep doing it.
China announced on Monday that it will soon announce details of its planned crude oil sales from strategic stockpiles.
By Bozorgmehr Sharafedin