13.09.202115:27 Forex Analysis & Reviews: Oil prices soared to a weekly high

On Monday morning, the price of oil shows a steady increase against the background of a permanent recovery in the production of raw materials in the Gulf of Mexico.

Recall that at the end of August, Hurricane Ida came to the coast of the United States. By then, its destructive power had reached the fourth category out of five, and the natural phenomenon had become one of the strongest in history. As a result of the hurricane, 90% of the US oil production capacities, which provide about half of the black gold production in the American part of the Gulf of Mexico, was suspended.

At the time of writing, the operation of the production facilities has still not been completely restored. This fact has become tangible support for the prices of black gold at the moment. Although there are objectively few reasons for oil to take off in the near future, its fall in the short term is also not expected.

Thus, the price of Brent crude futures for November delivery increased by 1.14% and is $ 73.75 per barrel. Following the Friday trading session results, these contracts rose by 2.1% to $ 72.92 per barrel.

The price of October WTI oil futures rose by 1.25% to $ 70.59 per barrel. At the close of trading on Friday, these contracts rose by 2.3% to $69.72 per barrel.

During the past week, the price of Brent oil increased by 0.4%, and WTI - by 0.6%.

Analysts of commodity markets note that the consequences of Hurricane Ida were a decrease in stocks in the United States by about 30 million barrels, and this figure may increase to 40 million barrels in the future. At the same time, experts are confident that in the short term, the oil will become a clear favorite among commodities in terms of cost growth in the 4th quarter.

Last week, the US Energy Information Administration published a forecast that the price of Brent crude oil will remain at the current level until the end of this year and will balance near the $ 71 per barrel mark in the 4th quarter.

According to Friday's data from the oil and gas service company Baker Hughes, the number of operating oil production units in the States increased by seven units last week - to 401.

Today, the main attention of investors is focused on the possibility of revising the forecast of demand for black gold from OPEC and the International Energy Agency due to the increasing level of COVID-19 diseases.

Experts suggest that the oil-producing coalition may revise its forecast of demand growth for next year downwards against the background of the spread of the coronavirus "delta." This strain threatens the rapid recovery of fuel production.