Oil prices rose Monday in Asian trading after gains for an eighth straight week as the market faces a global energy crisis before winter begins.
US crude futures rose in New York by around $ 84 a barrel, after adding 3.7% last week, ending the longest period of weekly gains since 2015, as Brent crude is heading towards 86. dollars.
The shortage of natural gas and coal from Asia to Europe has increased the demand for petroleum products in energy production. This coincided with the major economies recovering from the outbreak, which led to a significant tightening of the market.
US crude oil rose to its highest level since October 2014, also due to a supply disruption in the Gulf of Mexico caused by Hurricane Ida, after a period of uncertainty in demand caused by the coronavirus variable delta.
Asian demand for US crude oil is in increase, as the energy crisis has increased the prices of other grades which are valued relative to the global reference crude Brent.
On the other hand, the energy crisis contributed to the weakness of the Chinese economy during the third quarter, as the electricity shortage in September forced factories to curb production or shut down completely. The disruptions also affected crude oil processing last month, with refining rates dropping to their lowest level since May 2020.
Meanwhile, the consumption of diesel in India is on the rise with the start of annual festivals, which brought sales to near-pre-pandemic levels in the first half of October. The battered airline industry is also bracing for recovery, with the US border opening to vaccinated foreigners on November 8.
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