The past week began with a noticeable rise in oil quotes.
On Monday the price of October Brent crude oil futures literally skyrocketed above $ 67 per barrel for the first time since August 19, 2021, up 3.2 percent. The cost of American West Texas Intermediate (WTI) crude oil exceeded $ 64 per barrel with the same growth of 3.2 percent. Despite the fact that the oil market saw a sharp drop in oil prices last week and investors expected a drop in demand for fuel, oil quotes recovered quite quickly. While the pandemic reduces fuel demand, the supply is steadily increasing. US production rose to 11.4 million barrels per day last week, according to Baker Hughes, and drilling companies are increasing the number of rigs for the third straight week. In addition, the weakening dollar made oil cheaper in terms of other currencies.
On Tuesday the growth rates remained practically the same, while Brent won back the losses of the entire last week in two days. November futures for Brent crude rose 2.98% to $ 70.41 per barrel, October futures rose 3.14% to $ 70.91 per barrel. September futures for WTI rose 2.88% to $ 67.5.
On Wednesday the growth continued and the main reason was the publication of data from the US Department of Energy on oil reserves in the country. Oil reserves in the United States over the past week fell by 3 million barrels, to 432.6 million, while the forecast for a decline of 2.7 million barrels. Gasoline inventories also dropped significantly - by 2.2 million barrels, to 225.9 million, and here analysts expected a less strong decline: by 1.6 million barrels. Before the publication of the data, oil prices were getting cheaper, but then the dynamics changed dramatically. The price of November futures for Brent crude oil rose by 0.23%, to $ 70.57 per barrel, October - by 0.55%, to $ 71.44. October WTI futures also rose 0.06% to $ 67.58.
The next day there was some correction in the world market - investors were fixing profits after a three-day rally. The price of November futures for Brent crude oil fell by 1.19%, to $ 70.43 per barrel, October - by 0.97%, to $ 71.55. October futures for WTI fell 1.23% to $ 67.52 per barrel.
At the end of the week world oil prices rose by 10% over the week, which was the strongest weekly growth since May 2020. Friday also showed a noticeable positive trend - around 2 percent. One of the main reasons was the correction after the fall the day before. A natural factor worth mentioning is tropical storm Ida, which escalated into a hurricane off Cuba on Friday night and raised concerns about supply disruptions. In addition, the number of operating oil rigs in the United States in the week ended August 27 increased by five to 410 units, according to oilfield services company Baker Hughes.
