{"id":7920,"date":"2023-09-29T12:56:18","date_gmt":"2023-09-29T12:56:18","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=7920"},"modified":"2023-09-29T12:56:18","modified_gmt":"2023-09-29T12:56:18","slug":"oil-up-1-on-tight-u-s-supply-china-demand","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/7920\/","title":{"rendered":"Oil up $1 on tight U.S. supply, China demand"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices rose on Friday and were headed for a gain of about 3% for the week, driven by tight U.S. supply and expectations of strong fuel demand in China during the Golden Week holiday.<\/p>\n

U.S. West Texas Intermediate crude (WTI) was up $1.31, or 1.43%, to $93.02 per barrel at 1208 GMT.<\/p>\n

Front-month Brent November futures were up 88 cents, or 0.92%, at $96.26 per barrel ahead of the contract’s expiry later in the day. The more-liquid Brent December contract was up 97 cents, or 1.04%, at $94.07 per barrel.<\/p>\n

A backdrop of tight supplies in the U.S. provided further price support, with storage at Cushing, Oklahoma, the delivery point for U.S. crude futures, already at its lowest since July 2022.<\/p>\n

“Any additional decline would threaten to bring them down to a critical level, which could make further withdrawals difficult,” said Commerzbank analyst Carsten Fritsch.<\/p>\n

China’s fuel demand was set to firm as the week-long Golden Week holiday began on Friday.<\/p>\n

“(An) increase in international travel during the Golden Week holiday is boosting Chinese oil demand,” ANZ analysts said in a client note.<\/p>\n

Domestic travel is also expected to boost demand, with data from flight app Umetrip showing the average number of daily flights booked is a fifth higher than for Golden Week in 2019, before COVID.<\/p>\n

Meanwhile, inflation in the euro zone fell to a two-year low of 4.3% in September, the latest Eurostat flash reading showed, suggesting the European Central Bank’s policy of steady interest rate hikes was taking effect.<\/p>\n

Russia is considering introducing fuel export quotas if the current export ban is not effective in bringing down domestic prices.<\/p>\n

Russian gasoline and diesel exchange prices on the St. Petersburg International Mercantile Exchange (SPIMEX) fell slightly on Friday.<\/p>\n

Brent is forecast to average $89.85 a barrel in the fourth quarter, and $86.45 in 2024, according to a survey of 42 economists compiled by Reuters on Friday.<\/p>\n

Saudi Arabia and Russia’s supply cuts will dominate oil prices for the remainder of this year, but a run towards $100 per barrel could be capped by macroeconomic headwinds, analysts said.<\/p>\n

Updated on