Oil prices continued to rise on Wednesday, sustained by a retreat in the dollar, the closure of facilities in the Gulf of Mexico and an unexpected rebound in demand for refined products in the United States.
(Reasons of the OECD to cut to 2.2% the global GDP of 2023).
The price of barrel of Brent from the North Sea for delivery in November thus gained 3.53% to close at $89.32 in London. Meanwhile, the barrel of West Texas Intermediate (WTI) for November rose 4.64% to 82.15 dollars.
The market reacted in the first place to the evacuation of 12 platforms located in the Gulf of Mexico due to the passage of Hurricane Ian.
(Colombia, among the countries with the least financial inclusion in the world).
According to official data, the evacuated facilities represent 11% of crude extraction in the Gulf area, or some 190,000 barrels per day. A weakening dollar also made the barrel cheaper and more attractive to investors in other currencies.
The publication of the weekly report on commercial crude oil reserves in the United States revealed a slight but unexpected drop in stocks of 200,000 barrels, when the market expected the opposite: a rise of 4.1 million barrels in the week of December 23. September.
(Italy’s recession and credibility before Europe, Meloni’s challenges).
This difference in relation to forecasts is explained in part by a drop in imports and, above all, a 31% rise in exports in the week in question. In a context of energy crisis in Europe and sanctions against Russia for the invasion of UkraineUS crude is in high demand.
Over a four-week period, the period traders prefer to look at, oil exports are 40% higher than the same time last year. The biggest surprise, however, occurred with gasoline stocks, which fell 2.4 mb, when analysts expected a rise of 500,000 barrels.
“The import/export dynamic was so positive for prices that it overshadowed the decline in refinery activity,” said Mizuho’s Robert Yawger. Traders also noted the rise in demand for refined products in the United States, rising 10% in a week to its highest level in a month and a half.
AFP
