Iranian Oil ,Gas and Petrochemical Products Exporters' Union

Oil supply fears drive US benchmark to 7-year high

Oil supply fears drive US benchmark to 7-year high
The US crude oil price hit a seven-year high yesterday on fears that fuel demand was recovering faster from the economic slowdown than producers could bring supply to the market
The US WTI benchmark was trading at more than $81 a barrel, the highest since 2014. Roger Diwan, an oil analyst at consultancy IHS Markit, said: “The market is gripped by fears — fear of stronger demand, fear of a rally contagion from gas and power, fear of missing out on the rally, and the fear to rule them all: supply anxiety.” Prices had dipped last week when Jennifer Gran holm, the US energy secretary, told the Financial Times that Joe Biden’s administration was considering tapping into the nation’s strategic stockpiles to help ease prices at the pump. Rising petrol prices are an unwelcome liability for an administration that has seen its popularity drop. However, the energy department’s announcement on Thursday that there was no plan to release government supply “at this time”, sparked a recovery in prices on worries of tight supplies that have continued in to this week. In wider energy markets yesterday, European gas contracts for November delivery stood at €83.45 per megawatt hour, about double the level at which they traded in mid-August. Brent crude, the international oil benchmark, topped $84 a barrel yesterday, its highest since October 2018. Economists polled by Reuters expect data published tomorrow to show that US consumer prices rose 5.3 per cent in September from the same time last year, marking the fourth consecutive month that headline inflation in the world’s largest economy has topped 5 per cent. Prolonged inflation has piled pressure on the Federal Reserve to raise borrowing costs from record lows. The US central bank has already signalled it is ready to wind down its $120bn a month of pandemic-response bond purchases. “This creates an environment that is ripe for monetary policy mistakes,” said Greg Peters, head of multi-sector and strategy at bond investor PGIM. “The costs of petrol and heating and all the things plaguing global supply chains are exogenous factors that central banks have nothing to do with.”
Oct 12, 2021 13:04

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تصویر نمادالکترونیکی

About Us

The section of oil, gas and petro-chemistry is the up-most and first industrial vantage of the country and the pivot of the Economy of Iran. Regarding the importance of this section and the need for coordinating and organizing the most active people in the field of production and exporting oil ,gas, and petrochemical products ,some forethoughtful and job- makers in the private section of the country decided to come together to fight against the threats by using the opportunity of mass intelligence and potentials.