LAST UPDATE 22:45
US crude closed higher on Tuesday as the US government stepped up its decision to release oil from emergency reserves in the wake of the latest US Energy Agency (EIA) report, which is seeing an increase. of the offer from next year.
In its report on the short-term outlook, the EIA estimates that there will be an oversupply in the market from the beginning of 2022, with prices falling from the current levels from December. Global stocks are expected to start growing in 2022, “driven by output growth from OPEC + and the US combined with a slowdown in demand growth,” he said. The EIA increased its forecast for US production in 2022 by 1.4% to 11.9 million barrels per day.
The White House has previously indicated that it will consider using some of its emergency reserves if market imbalances persist in the near future.
The US government has also called on the Organization of the Petroleum Exporting Countries and its allies (OPEC +) to increase production at a stronger pace to fill supply gaps created by the global economy recovering from the coronavirus recession.
Against this background, the crude for December delivery added $ 2.22, or 2.7%, to close at $ 84.15 a barrel on the New York Mercantile Exchange. This is the highest level since October 26.
Brent crude for January delivery gained $ 1.35, or 1.6%, to $ 84.78 a barrel on the ICE Futures exchange in London.
Gas plunged, with the December contract falling 8.3% to $ 4,979 per hectare. British thermal units. The EIA downgraded its estimate for gas prices, by 1.6% this year, to $ 4.10 and by 1.8% to $ 3.93 in 2022.
.
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
