Oil hits multi-year high with OPEC + restraint amid global energy crisis

Crude oil storage tanks are seen from above at the Cushing Oil Hub in Cushing, Oklahoma on March 24, 2016. REUTERS / Nick Oxford / File Photo

  • OPEC + blocked its plan for gradual increases in supply on Monday
  • US crude inventories rise 951,000 barrels according to API – report
  • Coming soon: EIA procurement report, 2:30 p.m. GMT

LONDON, Oct. 6 (Reuters) – Oil hit a multi-year high above $ 83 a barrel on Wednesday, supported by OPEC + ‘s refusal to ramp up production faster amid concerns about to the world’s energy supply.

The market then reversed those gains due to an American Petroleum Institute (API) report showing an increase in crude inventories in the United States and, analysts say, technical indicators suggesting that oil has recovered. too fast.

On Monday, the Organization of the Petroleum Exporting Countries and Their Allies, known as OPEC +, chose to maintain a plan to gradually increase production and not increase it further as requested by the United States. and other consuming countries. Read more

Brent crude hit $ 83.47, the highest since October 2018, and at 8:13 a.m. GMT was down 4 cents to $ 82.52. U.S. crude climbed to $ 79.78, the highest since November 2014, and then fell 10 cents to $ 78.83.

“An energy crisis is unfolding as winter in the northern hemisphere has yet to begin and paves the way for even higher oil prices,” said Stephen Brennock of oil broker PVM.

The price of Brent has jumped more than 50% this year, adding to inflationary pressure that could slow the recovery from the COVID-19 pandemic. Natural gas has reached a record high in Europe, and coal prices from major exporters have also reached all-time highs. Read more

Jeffrey Halley, analyst at brokerage firm OANDA, said the two crude contracts appeared to be overbought based on a widely followed technical indicator, the Relative Strength Index.

“It may signal daily pullbacks this week but does not change the underlying bullish case for oil,” he said.

Some downward pressure came from API figures showing signs of slowing demand for fuel.

The industry group said inventories of US crude rose 951,000 barrels in the week to Oct. 1, the OilBook website reported, and that gasoline and distillate inventories were also up.

Attention will later focus on official inventory numbers expected at 14:30 GMT by the Energy Information Administration.

Additional reporting by Naveen Thukral; Editing by Jan Harvey

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