· Oil falls after U.S. inventories post surprise gain
Oil prices fell on Thursday, extending losses after official figures showed an unexpected rise in inventories in the United States although prices seem to have stabilized following a recent run of gains.
Brent crude was down 11 cents at $78.53 a barrel by 0137 GMT, after falling 0.6% on Wednesday. U.S. oil fell 5 cents to $74.78 a barrel, having also declined by 0.6% in the previous session.
U.S. oil and fuel stockpiles increased last week, the U.S. Energy Department’s Energy Information Administration (EIA) said on Wednesday.
Crude inventories were up by 4.6 million barrels in the week to Sept. 24 to 418.5 million, EIA data showed, compared with analysts’ expectations in a Reuters poll for a 1.7 million-barrel drop.
But both contracts tilted into higher territory earlier in the session. After two days of price losses, oil bulls may also be looking for the next barrier to breach after Brent rose above $80 for the first time in around three years on Tuesday.
″$80 oil is not over-the-top high,” said Joseph Perry, an analyst at StoneX, said.
· WTI to reach the $80 level amid supply crunch – TDS
Asian and European energy supply crunch is very supportive for oil, in the opinion of economists at TD Securities. WTI is trading around $75/b and could hit the $80/b mark in the coming months.
Supply crunch to keep crude steady
“Considering that Asia and Europe are facing challenges in securing sufficient energy supplies ahead of winter, and given the fact that US supply has still not recovered very quickly and that OPEC+ may have difficulties delivering the production increases to fulfill its promise to balance the market, crude markets may well continue to catch a bid as we move into Q4.”
“As OPEC+ struggles to deliver on the promised production increases, while US production growth continues to disappoint due to a lack of investment, and demand trends higher, a move to a higher trading range with $80+/b could be quite possible in the coming months as energy prices around the world could continue surging.”
· $80 oil is sending the market toward demand destruction, Morgan Stanley says
The current energy market picture is looking good for oil bulls.
International benchmark Brent crude passed the long-anticipated threshold of $80 per barrel on Tuesday, though it’s since slipped back down to trade at $78.47 as of Wednesday at 10:30 a.m. in London. West Texas Intermediate was trading at $74.73 per barrel around the same time.
With winter ahead and a gas crunch in Europe, the demand picture appears promising. But demand destruction could be right around the corner as prices climb higher, some experts are warning.
· Asia could accelerate its transition to renewable energy, says power firm executive
Reference: Reuters, CNBC
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