Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil Holds Drop From Seven-Year High as Energy Crunch Fears Ease

Published 2021-10-06, 11:04 p/m
Updated 2021-10-06, 11:04 p/m
© Reuters.

© Reuters.

(Bloomberg) -- Oil held losses in Asian trading after U.S. crude stockpiles grew more than expected and Russia offered to ease a natural gas crisis.

Futures in New York dipped to near $77 a barrel after retreating almost 2% on Wednesday. U.S. crude inventories expanded by 2.35 million barrels last week, according to government data, more than double the median estimate in a Bloomberg survey. Russian President Vladimir Putin said record volumes of natural gas could potentially be exported to Europe this year as the continent faces an energy crunch. Gas prices fell after his remarks.

See also: Gas-to-Oil Switching: A Trend to Shape Winter Crude Prices

Oil rallied to the highest since 2014 this week as an energy crunch from Europe to Asia raised the prospect of greater demand for crude and oil products ahead of winter, while OPEC+ said it would restore only a relatively modest amount of supply to the market in November as planned. Saudi Aramco (SE:2222) said the gas crisis has already boosted consumption, while the Financial Times reported the U.S. is considering the release of emergency oil reserves.

“High energy prices are mostly centered around supply-side issues and they do not look like they will persist beyond winter,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. in Singapore. “Where prices are at right now, I think they look reasonable, but I still have my doubts about $100 oil.”

U.S. gasoline stockpiles rose by around 3.3 million barrels last week, while distillate inventories slipped by 396,000 barrels, according to data from the Energy Information Administration. Crude supplies at the key storage hub in Cushing, Oklahoma, expanded for a second week.

Exports from Russia’s Gazprom (MCX:GAZP) PJSC (OTC:OGZPY) to Europe in the first nine months of the year were close to all-time highs, according to the company. If that pace is sustained for the rest of 2021, it would be a record year, Putin said at a televised meeting on Wednesday.

©2021 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.