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Oil prices rose early Friday, heading for another week of gains, with the U.S. benchmark hitting $ 80 a barrel as the world scrambles for natural gas and coal supplies for the winter .
At 10:29 a.m. EDT on Friday, WTI crude was up 2.03% to $ 80.05, and the international benchmark Brent Crude was up 1.76% to $ 83.39.
Oil prices were heading up 4% this week against a backdrop of tight supply and growing demand, also driven by a switch from gas to oil against a backdrop of record natural gas prices in Europe and in Asia.
The OPEC + group kicked off the rise in oil prices this week after deciding on Monday to keep plans to ease cuts unchanged, despite calls for more supplies from consuming countries, including the United States. United. OPEC + will increase supply in November by 400,000 barrels per day (bpd), the minimum the market expected before the meeting. As a result of this decision, WTI crude prices hit their highest level in seven years.
Oil stabilized on the downside on Wednesday after the EIA reported an increase in crude inventories and world energy prices fell after Russian President Vladimir Putin suggested Russia may increase Europe’s natural gas supply this winter.
Prices reversed losses on Thursday after reports the US Department of Energy reverted to previous comments that it was considering a release of the strategic oil reserve and a ban on crude oil exports.
The tight pre-winter energy supply continued to support oil prices early on Friday.
US commercial inventories of distillates – which include diesel for public transportation and industrial use and necessary heating in winter – have fallen to the lowest level since 2000 when measured on the basis of demand coverage. “said Vanda Insights.
“In general, the risk of tight markets during the winter months has not gone away, and in particular the prospect of a gas-to-oil conversion could add another layer of crude oil demand,” Saxo said Friday. Bank.
“An upside breakout in Brent could see it hit a 2018 high of $ 86.74,” the bank’s strategy team added.
By Tsvetana Paraskova for OilUSD
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