Oil prices rose on Monday and at times marked their highest level since the beginning of August.
In the late afternoon, a barrel (159 liters) of North Sea Brent cost 73.64 US dollars, around 71 cents more than on Friday. The price of a barrel of the American West Texas Intermediate (WTI) rose 91 cents to $ 70.64.
Production in the Gulf of Mexico remains a major issue in the crude oil market. After production there had been temporarily suspended completely due to the severe hurricane “Ida”, it is only slowly starting up again. The raw materials experts at Commerzbank refer to information from US authorities, according to which the losses amount to 1.1 million barrels per day and thus still 60 percent of the normal production volume. “This corresponds roughly to the amount of crude oil that was last produced by the Opec countries Angola or Libya.” The reduced supply is thus supporting prices.
According to Commerzbank, refineries are normalizing faster than crude oil production. Currently, only seven percent of the processing capacities on the US Gulf Coast are out of order. “The fact that crude oil processing normalizes faster than crude oil production after a hurricane is unusual and suggests a further decline in US crude oil inventories.”
Oil prices also benefited from the generally positive mood on the stock markets. The somewhat more optimistic mood is also supporting demand for crude oil, which is heavily dependent on economic developments./jsl/men
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