Meanwhile, the IEA predicts a sharp rebound in demand for the remainder of 2021: File Image / Pixabay
More evacuation from offshore USA Gulf of Mexico platforms in response to tropical storm Nicholas heads towards Texas The coast led to another modest session of oil gains on Tuesday, but gains were capped towards the end of the US summer season and a potential increase in supply.
Brent rose 15 cents To $ 73.66 per barrel to 0048 GTM, while West Texas Intermediate rose 23 cents To US $ 70.68 per barrel.
Nicholas Threatens to Wreak More Damage to Texas Infrastructure and Louisiana still recovering from Hurricane Ida, but Hiroyuki Kikukawa, general manager of research at Nissan Securities“Concerns about Nicholas have prompted purchases as they are likely to hit the area destroyed by Ida, although the force is not expected to be as strong as Ida.”
The strength is not expected to be as strong as Ida’s.
Hiroyuki Kikukawa, Nissan Securities
Kikukawa added: “But the market’s upside potential will be limited as the US summer season has ended and there is a potential increase in supply from planned oil releases from strategic reserves in the United States and China as well as the possible resumption of oil exports Iran… “
While most analysts believe Iran will not be an issue anytime soon, that position was questioned Sunday when the United Nations Atomic Energy Observatory reached an agreement with Tehran on the expired maintenance of monitoring equipment, which could theoretically open the way for the resumption of negotiations between the Islamic Republic and the United States.
As for China, its State Reserves Administration announced on Tuesday that it would be holding an auction for about 7.38
million barrels of crude oil (mainly from Middle East) September 24, when the first public sale of strategic oil reserves took place.
A Beijingoil trader who estimated that oil was bought on average by 40 dollars per barrel: “By auctioning off some of the cheapest stocks, sales can help drive down prices, but also make a profit – kill two birds with one stone.”
Generally International Energy Agency said on Tuesday that the global oil market will have to wait until October for additional supplies to compensate for the damage done by Ida: “Unplanned production disruptions temporarily halted the upward trend in global oil supplies, which began in March, but growth should resume in October.” said Parison the basis of the agency.
The IEA noted that while global fuel consumption will be reduced by 310,000 barrels per day (barrels per day) on average every month from July to September due to the increase in the number of infections caused by Delta variants, the resumption of the spread of Covid is slowing, and the agency expects a sharp recovery in demand for 1.6 million barrels per day next month, with continued growth until the end of the year.