Oil-soaked, mild U.S. winter stimulus forecast from several years of retreat

An employee is collecting crude oil samples at a oil well run by the Venezuelan state oil company PDVSA on July 28, 2011 in Mauritania, Venezuela. REUTERS / Carlos Garcia Rawlins / File Photo

  • The NOAA report for the warmer US summer weighs in on oil prices.
  • The price of coal and natural gas has fallen, pushing oil – analyst
  • The Relative Strength Index is still in overcrowded territory.

NEW YORK, Oct. 21 (Xinhua) – Oil prices plummeted Thursday, October 21, 2011. Falling in the US winter forecast showed brakes rising prices at the start of the session, which was more than $ 86 a barrel, with strong supply and global power outages.

The National Oceanic and Atmospheric Administration announced Thursday morning that most of the winter temperatures in the United States are expected to be warmer than average.

“The report indicates a more arid and warmer climate in the southern and eastern US,” said Bob Yawger, Mizuho’s future energy director.

Brent crude fell from $ 1.21 to $ 84.61, up from $ 86.10 in October 2018. The US West Texas Intermediate crude dropped from 92 cents to $ 82.50.

Prices rose Wednesday as the U.S. Energy Information Administration reported that crude and crude stockpile in Kushing, Oklahoma, had shrunk by three years.

“The $ 86 million retailers have taken advantage of the opportunity to make a profit,” said Louis Dixon of Restad Energy. “As a result, oil prices have risen sharply.”

Brent prices have risen by more than 60 percent this year, thanks to the increase in the pace of supply from the Organization of Petroleum Exporting Countries (OPEC +) and the global pile of coal and gas. To oil.

Declining prices for coal and natural gas have put pressure on them. Coal in China down 11%, prolonging losses This week Beijing could intervene to cool the market. Read more

“Coal and gas prices are declining and technical indicators of comparable strength are still sharp in the over-purchased states, sharp, but the price of commodities is falling,” said Jeffrey Haley, analyst at Ondan.

Still, some analysts are calling for more oil to be harvested, as OPEC + adheres to a gradual increase in production and demand is expected to reach pre-epidemic levels.

Giostad’s attitude was harsh for the rest of the year, according to Giovanni Stavanovo Brent of Swiss Bank UBS, who is expected to trade for $ 90 in December and March.

Additional report by Alex Lauller, Rod Nickel and Yuka Obayashi; Edited by David Gregory and Nick Ziminsky

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