Oil prices fall after peaking in three years
A shortfall in global energy supplies affected crude markets earlier this week, pushing oil prices to their highest levels in three years, before falling.
It came as data showed U.S. inventories of crude oil, gasoline and distillate unexpectedly increased last week, according to the latest figures from the American Petroleum Institute.
A day earlier, the price of oil per barrel had risen above $ 80 for the first time in about three years
“Oil prices had risen in recent days, supported by growing demand as economies recover from the coronavirus pandemic and amid an electricity crisis in Europe and China, which would force governments to switch to crude oil to produce more electricity and meet the needs of their nations. “said Naeem Aslam, chief market analyst at AvaTrade.
He added that data from last week showed a significant drop in inventories due to lower output at Gulf of Mexico refineries and increased demand.
Traders expect the Organization of the Petroleum Exporting Countries (OPEC) and its allies to decide to maintain the supply when they meet next week.
OPEC has forecast that demand for oil will increase sharply over the next several years as economies recover from the pandemic. He also warned that the world must continue to invest in production even as it shifts to green energy.
Record gas prices due to declining global production are spilling over into oil markets and are expected to drive crude up.
White House press secretary Jen Psaki told reporters: “We are not just engaged with OPEC, we are looking at all the ways we have to reduce gas prices or fight the cost of gas. oil”.
China, the world’s largest importer of oil and second-largest user after the United States, is experiencing a weakening housing market and increasing power outages. It also affected investor sentiment, as any fallout from its economy would likely impact demand for oil.
Meanwhile, a fuel supply crisis has forced the British government to enlist in the military as long lines at gas stations enter their fourth day.
Shells (RDSB.L) the stock was down 1.9%. It comes as it has been reported that Shell’s UK electricity retailer Shell Energy will grow by more than a quarter after taking on 255,000 customers from Green Supplier Limited, which failed following the recent surge in natural gas prices.
Shell last week agreed to a $ 9.5 billion sale of its Permian Basin assets to ConocoPhillips (COP).
During this time BP (BP.L) had to temporarily close some of its service stations in Britain after encountering fuel transport issues due to a shortage of truck drivers across the industry. Its shares were down 1.6% Wednesday morning. Its share price fell 1.6%.
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