The rebound came ahead of inventory reports from the American Petroleum Institute (API) industry group on Tuesday and the government’s US Energy Information Administration on Wednesday. Analysts expect the latest weekly US inventory data to show a 1.9 million barrel rise in crude stocks.
“The energy crisis is not yet close to abating, so we expect strong oil prices to prevail in November and December as supply lags behind demand and OPEC + remains on the sidelines, “said Louise Dickson, senior oil markets analyst at Rystad Energy.
OPEC +, which comprises the Organization of the Petroleum Exporting Countries and allies like Russia, is currently increasing production by 400,000 barrels per day (bpd) each month, but rejected requests to increase pumping faster in response to rising prices.
Goldman Sachs said Brent is likely to beat its year-end forecast of $ 90 a barrel, while Larry Fink, CEO of the world’s largest asset manager BlackRock, said that there is a high probability that oil will hit $ 100.
While China’s coal and power markets cooled down a bit after government intervention, Energy prices remain high around the world as temperatures drop with the onset of winter in the Northern Hemisphere.
Consumption of naphtha and distillates in the United States is again in line with the five-year average, after more than a year of depressed demand, and the market will be closely watching inventory levels in the world’s largest economy.
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