Oil prices will increase profits on solid supply for many years to come

Crude oil storage tanks can be seen above at Cushing Oil Center, Cushing, Oklahoma, USA, March 24, 2016. REUTERS / Nick Oxford

  • WTI has had the biggest impact since October 2014, with Brent rising by 3 years.
  • Viewers raise the long distance to the U.S. crude oil network -CFTC
  • U.S. oil and gas prices fell for the first week in 7 -Baker Hughes

TOKYO, Oct. 25 (Reuters) – Oil prices rose on Monday amid rising global demand for oil, as the economy in the United States and other parts of the world worsens from a cholera epidemic, widening the year-on-year high. – Stimulating weaknesses.

US West Texas Intermediate (WTI) crude futures rose 87 cents or 1.0% to $ 84.63 a barrel at 0342 GMT, after gaining 1.5% on Friday. Has hit the highest since October 2014 – $ 84.76 – earlier in the session.

Brent crude futures rose 71 cents or 0.8% per barrel to $ 86.24, following a 1.1 percent increase from last Friday. The contract previously received a maximum of $ 86.43 from October 2018.

“With the strong demand for oil in the United States, the tone of the oil market has been very strong, which has led some speculations,” said Teshome Emory, chief executive of Emory Fund Management Encryption Encryption.

After more than a year of congested oil demand, gasoline and diesel consumption has returned to an average of five years in the United States, the world’s largest oil producer. Read more

Meanwhile, U.S. energy companies cut off oil and natural gas machinery last week for the first time in seven weeks, despite rising oil prices, Baker Hughes Co. (BKR.N) Energy Service said in a recent report. Read more

The U.S. Commodity Futures Trading Commission (CFTC) said Friday that financial managers have extended their net long-term U.S. futures and options to October 19, citing strong market sentiment.

Oil prices have risen sharply in China, India, and Europe, prompting a shift in oil prices to diesel and energy.

But analysts warn that there may be some corrections in the coming weeks, as the price of crude is rising sharply.

“So far, WTI’s profit margins have reached levels of 2007 and 2009, and are slightly higher than when we saw the downturn,” Emory said.

WTI futures contracts are currently highly backward, which means that later contracts will be priced lower than current contracts. Typically, high-cost trading, reflecting the costs of storing oil in the later months.

“Cruelty continues to support oil prices due to tight international supply, but the immediate profit for WW’s recent contract may be limited,” said Toshitaka Tazawa, a analyst at Fujitomi Securities Company Limited.

Reporting by Yuka Obayashi; Corrected by Kenneth Maxwell and Michael Perry

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