RIYAD: Oil prices rose on Wednesday after inventories of U.S. crude at the nation’s largest storage facility hit three-year low and nationwide fuel inventories fell sharply, a sign growing demand.
Brent crude futures were at $ 85.82 per barrel, up 0.9% or 74 cents and the highest since October 2018.
November US West Texas Intermediate crude, which expires Wednesday, was $ 83.87, up 91 cents, or 1.1%. The most active WTI contract for December rose 98 cents to $ 83.42 a barrel.
Crude prices have risen as supply tightened, the Organization of the Petroleum Exporting Countries maintaining a slow increase in supply rather than stepping in to add more barrels to the market and as American demand has intensified.
Globally, refiners have increased their production through high margins, which can only be limited by maintenance. The use of refining capacity in the United States fell in the most recent week, but analysts noted that supply could continue to tighten if American refiners also resume processing.
Reduction of emissions
Anglo-Australian mining company Rio Tinto has announced a $ 7.5 billion plan to cut carbon emissions by 50% by 2030 and advance its 2025 target of a 15% reduction in emissions compared to at 2018 levels.
China has entered into three massive liquefied natural gas deals with US exporter Venture Global LNG.
According to documents posted on the US Department of Energy’s website, the deals with Chinese state-owned oil giant Sinopec include two 20-year deals totaling 4 million tonnes of LNG per year.
Germany’s oil imports
German crude oil import volumes fell 7.1% from January to August and related lockdowns hit the industry, official data showed Wednesday.
Oil volumes from January to August fell to 51.9 million tonnes from 55.8 million in the same months of 2020, according to statistics from BAFA’s foreign trade office.
Crude oil prices could reach $ 100 a barrel in the first or second quarter of next year, with global stocks at their lowest level, Iraq’s petroleum minister said.