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Oil closes with losses after setback in industrial raw materials

October 21, 2021 | 2:50 pm

The oil prices They closed lower on Thursday after closing higher on Wednesday amid a general decline in industrial materials.

December contract United States WTI It fell 1.1% to $82.50, trimming its winning streak for six consecutive days.

While the oil from North Sea Brent For December delivery, it closed down 1.4% at $84.61 a barrel, after ending Wednesday at its highest level since October 2018, according to MarketWatch data.

Oil closed with a loss as commodities such as copper and iron ore declined, as well as increased adverse prospects for China’s economy, while the dollar rose, causing a drop in the attractiveness of the energy and metals traded in the currency.

Regardless of profit taking, the trajectory of crude oil continues to look upbeat for the rest of the year, thanks to rising demand and strict production policy from the Organization of the Petroleum Exporting Countries and its allies. (OPEC+)Louise Dixon said in a note cited by MarketWatch.

Tension in the market is also due to the shortage of coal and natural gas which has led to higher consumption of crude oil, indicating a recovery in prices.

Saudi Arabia said that any additional oil from OPEC+ would do little to control the rising cost of gas, and predicted demand would rise by as much as 600,000 barrels per day if the northern hemisphere winter was colder than usual, according to Bloomberg.

This Thursday, the Energy Information Administration (environmental impact assessment) Reported domestic supplies of natural gas increased by 92 billion cubic feet for the week ending October 25, which was slightly above the average increase of 88 billion cubic feet that analysts polled by Standard & Poor’s Global Platts had expected.

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