World oil prices today increased on September 15 due to a positive demand outlook

World oil prices today increased on September 15 due to a positive demand outlook

Oil prices rose on Wednesday morning after industry data showed crude inventories in the US fell while demand recovered.

Brent crude rose 39 US cents, or 0.5%, to $73.99 a barrel, while US crude (WTI) added 44 US cents, or 0.5%, to $70.90 a barrel. .
U.S. inventories of crude oil, gasoline and distillates all fell last week, according to market sources, citing American Petroleum Institute data on Tuesday, after Hurricane Ida shut down many refineries. .
Crude inventories fell by 5.4 million barrels for the week ending September 10.
“The impact of Hurricane Ida was much larger than many people anticipated,” said Edward Moya, senior analyst at OANDA.
Tropical Storm Nicholas moved slowly across the Gulf Coast on Tuesday, pelting Texas and Louisiana, flooding streets and leaving hundreds of thousands of homes and businesses without power.
However, refineries in Texas continue to operate normally.
The damage from Nicholas comes just two weeks after Hurricane Ida impacted a significant amount of Gulf Coast refining capacity this month.
The International Energy Agency (IEA) said that after three months of global oil demand declines due to the spread of the Delta variant and new restrictions, the aggressive deployment of the vaccine has spurred the oil demand recovery.
However, details of a plan to sell crude from China’s strategic reserve have weighed on prices, with China’s state reserve regulator saying it will auction off 7.4 million barrels of crude oil on September 24.

Natural gas prices in the US hit a 7-year high

U.S. natural gas (LNG) prices rose to a seven-year high, on concerns that Tropical Storm Nicholas could delay the return of production in the Gulf of Mexico and because of record global gas prices, demand for with US exports increasing.

Prices rose despite forecasts of cooler weather and weaker-than-expected demand over the next two weeks.

LNG futures futures rose 2.9 US cents, or 0.6%, to $5,260/mmBtu, the highest close since February 2014 for the second consecutive day.

Since Hurricane Ida entered the Gulf of Mexico in late August, gas prices have increased by more than 31% mainly due to the slow return of production after the storm. Traders said gas prices have also been supported by hotter-than-normal US weather and high demand for air conditioners this summer, high global gas prices and as demand for fuel increases.

Data provider Refinitiv said gas production in the 48 US states fell to an average of 90.1 billion cubic feet per day (bcfd) in September, from 92.0 bcfd in August 2021.

About 1.1 bcfd, or 48%, of US Gulf of Mexico gas production has remained closed since Hurricane Ida, according to government data.

Refinitiv forecasts average US gas demand, including exports, to rise from 86.8 bcfd this week to 87.1 bcfd next week as demand picks up in some areas.

Gas arrivals at U.S. LNG export plants have averaged 10.9 bcfd so far in September, from 10.5 bcfd in August.

Source: VITIC/Reuters

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