Fuel prices remain stable but remain at a two-month high on solid supplies

An employee holds a nose to pour gasoline into a vehicle at a petrol station in Mumbai, India, May 21, 2018

  • U.S. raw materials have fallen to low since October 2018
  • Strong natgas prices support upward
  • OPEC + is working to keep prices down to $ 70 – Iraq’s oil minister

LONDON, Sept. 23 (Reuters) – Oil prices continued to fall sharply to $ 75 a barrel on Thursday, after two hurricanes disrupted production in the Gulf of Mexico.

Brent crude fell by 1035 GMT to $ 75.95 per barrel to 24 cents or 0.3%. West Texas Intermediate (WTI) crude fell 28 cents or 0.4% to $ 71.95 a barrel.

Earlier in the session, Brent rose to $ 76.53 a barrel, the highest level since mid-July.

According to the US Energy Information Administration, both contracts fell by 2.5% in the week to September 17, after US raw materials fell to 3.54 million barrels – the lowest since October 2018.

“With the slow return of Mexican Gulf production, and natural gas prices skyrocketing, OPEC + ‘s structural outlook is promising as it struggles to meet current production quotas,” he said.

Many OPEC countries – including Nigeria, Angola and Kazakhstan – have struggled to increase production in recent months due to years of investment or maintenance. Read more

Iraqi Oil Minister said on Wednesday that OPEC + is working to bring oil prices closer to $ 70 a barrel as the world economy recovers. The group will meet on October 4.

After the US Federal Reserve set inflation rates next year, the dollar, which is often inversely related to commodity prices, fell slightly by more than a month after clearing enough space to ease the need. Read more

“The federation has already announced its intention to reduce, thus ensuring optimism for the economy, and ultimately indicating US oil demand,” said Barbara Lambrech, a Commerzbank analyst.

On Thursday, the oil market rebounded to demand for vulnerable assets due to concerns over dollar bond interest due to property developer China Evergrande. Read more

EIA data show that the use of East Coast refineries in the United States has increased by 93% since May 2019, the highest level since May 2019.

According to ANZ Research, market sentiment is also supported by increasing natural gas prices.

“Shortages of gas supply may encourage the conversion of energy supplies from gas to oil,” ANZ analysts said in a statement.

Gas prices have risen sharply in recent months around the world as a result of recent epidemics, low gas reserves and the influx of natural gas from Russia. Read more

Report by Bozgmer Sharafedin in London, Solly Paul in Melbourne and Kustav Samantha in Singapore; Edited by Muralikumar Anantharaman, Jason Nellie and Emelia Cityhol-Matarise

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