On Thursday the 14th October 2021 oil price surged factors that may have affected the price includes draws in gasoline stocks.
Brent crude futures gained 0.8%, to $83.85 a barrel at 06:47 GMT after falling 0.3% on Wednesday.
The price rise could also be attributed to consumer presumption that increasing natural gas prices with the winter season forthcoming will create a demand diversion to oil to meet market demand.
Yesterday Wednesday 13th October 2021 the American petroleum institute reported that the united states crude oil stock surged to 5.2 million barrels by end of October 8. However, inventories for gasoline fell by 4.6 million barrels and also distillate stock fell by 2.7 million barrels.
According to experts from Reuters an oil market poll was conducted and the results showed that gasoline stocks dropped by 0.1 million barrels while crude inventories rose by 0.7 million barrels.
For the next two years the nation of angola may struggle to meet OPEC quota in respect to production output. This was disclosed by angola’s finance minister Vera Daves.
The U.S. Energy Information Administration (EIA) announcement on Wednesday that there would be a decline in the production of crude oil in USA, This has caused market speculation leading to market supply rigidity.
Hiroyuki Kikukawa stated that “The current tightness in the crude market and near-term outlook for seasonal demand increases lent support to investors’ sentiment, outweighing weaker demand forecast by OPEC,”
However, the producer group said rising natural gas prices could boost demand for oil products as end users switch fuels.
In OPEC’s monthly report recall the cartel devalued its world oil demand growth forecast for 2021. Thus, due to the energy crisis leading to an increase in natural gas price OPEC predicts that the substitute demand for oil commodities will increase.