WTI crude oil price breaks through $75 at the opening this week
As there are signs that under the influence of the global energy crisis, the crude oil market is tightening. When the market opened this week, oil prices rose.
The price of West Texas Intermediate (WTI) crude oil (WTI) broke through $75 a barrel after five consecutive weeks of rising, and the price of Brent crude (Brent) reached its highest level since October 2018. Ben Luckock, co-head of Trafigura Group's oil trading department, said oil prices will continue to rise as supply cannot keep up with rapidly increasing demand. On the same day he made the above remarks, Goldman Sachs Group Inc. pointed out that Brent crude oil prices may reach $90 per barrel before the end of the year because the crude oil gap in the market is larger than many people expected.
There are signs that global inventories have fallen sharply, and demand will heat up before the arrival of winter, while OPEC+ is only slowly increasing the oil supply on the market, and crude oil prices are rebounding. Trafigura said that while traders are concerned about the prospect of a huge supply shortage in the market, the longer-term oil price is still hovering at a low level of around US$70 per barrel. The so-called spread, which measures the strength of the market, has risen sharply in recent weeks, which is another sign that traders have a vigorous growth trend in the prospects of the oil market.
At 10:19 am London time, the price of West Texas Intermediate crude oil rose 1.3% to $74.95 per barrel. The price of Brent crude oil rose 1.4% to $79.16 per barrel.
OPEC+ plans to hold a meeting on October 4. After insisting on increasing the supply of 400,000 barrels per day in recent months, the organization re-examined its production policy, and its internal documents have emphasized the risk of increasing demand from the natural gas crisis.
Citigroup Inc. said it remains "fully bullish" on crude oil and natural gas based on the outlook for commodities. On Monday, US natural gas futures prices rose for the third consecutive day because inventory levels remained low before the heating season.