Brent Crude Closes Above $ 85 A Barrel For The First Time In 3 Years | Energy news

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Meanwhile, benchmark US crude closed at a new seven-year high.

Through Bloomberg

The global benchmark Brent closed above $ 85 a barrel for the first time since October 2018 amid a stronger stock market and lingering concerns about a global energy crisis.

Brent crude futures rose 0.9% on Tuesday after a choppy session, while benchmark US crude closed at a new seven-year high. Risk sentiment prevailed across markets as stocks rose and the US dollar weakened. Meanwhile, Russia has signaled that it will not do everything it can to offer European consumers additional gas to ease the supply crunch unless it gets approval for a controversial gas pipeline.

“Crude price volatility is here to stay as demand uncertainty remains high in the near term,” said Ed Moya, senior market analyst at Oanda Corp. , oil prices are ripe for big profit taking. “

Crude has advanced over the past eight weeks as the energy crisis – sparked by shortages of natural gas and coal – coincided with a rebound in demand from key economies emerging from the pandemic. Russia said it was tightly maintaining gas supplies to Europe and that OPEC + had not pumped enough crude to meet production targets, exacerbating a tight supply situation. Oil is “possible” to hit $ 100 a barrel this winter, according to commodities trader Mercuria Energy Group Ltd.

Prices

  • West Texas Intermediate for November delivery rose 52 cents to $ 82.96 a barrel in New York City.
  • Brent for the December settlement advanced 75 cents to close the session at $ 85.08 a barrel.

In return for increased supplies, Russia is keen to gain approval from Germany and the European Union to start using the Nord Stream 2 pipeline to Europe, according to people close to state-owned gas giant Gazprom and the European Union. Kremlin. Gazprom PJSC’s gas exports to its main markets fell in the first two weeks of October to their lowest since at least 2014 for the time of year.

Technical indicators show that crude is in overbought territory. West Texas Intermediate 14-day Relative Strength Index holds above 70, signaling oil could take a pullback.

Meanwhile, in the United States, analysts polled by Bloomberg estimate a gain in crude inventory of 2.25 million barrels last week. The industry-funded American Petroleum Institute will release inventory data later Tuesday, while the U.S. government will release its weekly tally on Wednesday.

Other market news:

  • Investors in Petroleo Brasileiro SA excluded from its settlement for bribery of $ 2.95 billion in the United States engage in a class action lawsuit in the Netherlands – where the Brazilian oil producer has failed to have the claim dismissed. trial for procedural reasons.
  • Halliburton Co. failed to stir investor enthusiasm with third quarter results that simply lived up to expectations after revenues were hit by Hurricane Ida.



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