12.09.2024. / 11:00
NEW YORK – Oil prices once again topped $70 as U.S. production disruptions from Hurricane Francine and falling inventories overshadowed fears of weak demand.
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On the London market, the price of a barrel increased by 1.07 dollars in one day and amounted to 70.26 dollars this morning. On the American market, a barrel traded at $1.2 higher at $66.95. Markets were shaken by lowered estimates for global oil demand.
The Organization of the Petroleum Exporting Countries (OPEC) again lowered its estimate of demand growth this year, from 2.11 million to 2.03 million barrels per day. They also lowered the forecast for next year, from 1.78 million to 74 million barrels per day.
The world economy should grow solidly in the second half of the year, but problems in the real estate sector and increased sales of liquefied natural gas trucks and electric cars could curb demand for gasoline and diesel, OPEC said in its September report.
As recently as last week, the group and its allies confirmed that they plan to increase supplies from October, by just under 190,000 barrels per day. This week, they changed their minds and delayed a slight increase in deliveries until the end of the year after prices hit a nine-month low under pressure from demand concerns.
Traders in the US, however, recalled the drop in inventories.
Oil inventories fell by 2.793 million barrels last week, market sources said, citing data from a report from the API, while gasoline inventories also fell by 513,000 barrels. Distillate stocks rose slightly.
Prices were also supported by production disruptions in the US due to Hurricane Francine.
Francine shut down about a quarter of oil and gas production in the US Gulf of Mexico, the US Bureau of Safety and Environmental Protection (BSEE) announced. Mina
Source: www.capital.ba
