Oil prices rise in China’s energy crisis, Reuters reports

© Reuters. FILE PHOTO: Crude oil storage tanks in Kushung, Oklahoma, USA April 21, 2020 Photograph in the air at the Cushite Oil Center. REUTERS / Drone Base

By Bozorgmer Sharafedin

LONDON (Reuters) – As global warming in China raises concerns over whether the world’s largest energy consumer can meet domestic demand, supply congestion, electricity and coal prices continue to rise.

The stock fell 0.6% on Monday and rose to $ 84.98 at 1206 GMT by 65 cents or 0.8%. The contract is still around 7% this month.

West Texas Intermediate (WTI) futures gained 87 cents, or 1.1%, to $ 83.31, up 0.2% in the previous session and about 10% this month.

London-based PVM Oil Associates Petroleum analyst Tamas Varga said: “Brent is often leading the way in the bull market, but this time (US) domestic affairs are giving more support to WTI.”

“Due to the recent hurricane season,[US]producers have not fully recovered from the damage caused by Hurricane Ida.

Traders and analysts say oil, coal and natural gas prices could rise as the northern hemisphere approaches and rising demand for heating rises.

According to AccuWeather.com, the cold weather near the northern hemisphere is already taking hold in China.

In China, coal futures rose to 7.8% on Tuesday, and risky assets such as stocks were found.

Rising coal and natural gas prices in Asia are expected to turn some end users into alternative oil prices. [MKTS/GLOB]

Restad Energy analyst Louise Dixon said he was not sure how the imbalance would affect the oil market, but oil traders felt they were in the middle of a high winter.

However, high energy prices are also hurting China’s one-year economic growth, official data showed on Monday.

China’s daily operating volume also declined last month, falling to its lowest level since May last year.

US oil production is expected to increase by helping to cover prices. According to the Energy Information Administration, production of shale, the world’s largest oil producer, will increase further next month.

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