Oil looks set to test 3-year high as supplies tighten
Oil rig pumps operate at the Inglewood Oilfield in Culver City, Calif. On Sunday, July 11, 2021.
Kyle Grillot | Bloomberg | Getty Images
Oil prices rose for a fourth day on Friday, pushing Brent to three-year highs as investors focused on tighter supplies amid appetites for riskier assets like crude and large hopes of recovery from the pandemic.
Brent crude rose 40 cents, or 0.5% to $ 77.65 a barrel, at 12:37 GMT, after hitting a two-month high on Thursday and closing at its highest since October 2018.
US oil rose 27 cents, or 0.4%, to 73.57 a barrel, after closing 1.5% in the previous session, the highest since early August.
“Crude prices appear to be in a one-way street going higher… with a risk appetite running wild,” said Edward Moya, senior market analyst at OANDA.
A sign of strengthening demand for fuel, the capacity utilization rates of refineries on the U.S. east coast rose to 93%, the highest since May 2019, according to data from the Energy Information Administration (EIA).
Inventories fell to the lowest in nearly three years after damage from two hurricanes kept draws high in the United States, EIA data showed earlier in the week.
Some members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC +, have also struggled to increase production following underinvestment or delays in maintenance work. during the worst global health crisis in 100 years.
Yet U.S. oil refiners looking for replacements for U.S. Gulf crude lost to storms may have turned to Iraqi and Canadian oil, while Asian buyers have turned to Middle Eastern grades and from Russia, analysts and traders said.