World oil prices shifted to a steady rise on Tuesday afternoon after an indistinct morning dynamics and a fall in previous trading sessions, on expectations of a slight decrease in supply and an increase in demand. This is evidenced by the bidding data.
The price of November futures for North Sea Brent crude oil rose by 1.51% to $40.21 per barrel, while October futures for WTI crude oil rose 1.74% to $37.91 per barrel.
By mid-Tuesday, oil prices were steadily gaining ground, regaining the decline in previous trading sessions. In particular, the price of Brent crude oil fell for three days in a row, and during this time it lost almost 3% of its value.
Now traders, firstly, are closely monitoring the situation with hurricanes in the United States, which may put pressure on oil production in the country. So, according to the US Bureau of Safety and Environmental Control (BSEE) on Tuesday, US oil companies stopped more than 20% of oil production in the Gulf of Mexico due to Hurricane Sally, which intensified to a dangerous second category on its way to the US state of Louisiana.
In addition, they expect growth from the demand for oil from its largest consumer, China. In particular, according to the State Statistical Bureau of the PRC, industrial production in the country accelerated growth in August to 5.6% in annual terms from 4.8% in July. At the same time, analysts had expected the indicator to grow by only 5.1%.
Meanwhile, a new assessment of the situation by the International Energy Agency (IEA) showed that a sharp recovery in global oil demand, which arose after the relaxation of coronavirus restrictions in many countries, stopped due to the threat of a вЂњsecond waveвЂќ of infections, and now the forecast of the market situation вЂњhas become more fragile. вЂњ Therefore, traders are looking forward to the meeting of the OPEC + Ministerial Monitoring Committee (JMMC). It will take place on Thursday 17 September. According to media reports, OPEC + does not intend to announce an additional cut in oil production, despite the fall in prices.