The US Department of Energy said on Thursday it did not currently plan to sell oil from the strategic reserve, although the country's Energy Secretary Jennifer Granholm said earlier that such a possibility was being discussed, Swissinfo reports.
Her words, as well as promises from Russia to increase gas supplies to Europe, led to a decline in oil prices on Thursday. The market, however, rolled towards prices increase when the US Department of Energy said that Granholm’s words referred to the approved sales of oil from the strategic reserve, and not to new steps.
The cost of December Brent futures at the London ICE Futures exchange by 8:15 am Kyiv time on Friday amounted to $82.94 per barrel, which is $0.99 (1.21%) higher than the price at the close of the previous session. As a result of trading on Thursday, the price increased by $0.87 (1.1%) up to $81.95 per barrel.
The price of WTI November futures at the New York Mercantile Exchange (NYMEX) by this time amounted to $79.38 per barrel, which is $1.08 (1.38%) higher than the final value of the previous session. The day before, the value of these contracts increased by $0.87 (1.1%) up to $78.3 per barrel.
Over the past three months, Brent has risen in price by 13%, WTI – by 11%.
The rise in prices was fueled by a significant increase in oil demand in an economy recovering from the effects of the COVID-19 pandemic. At the same time, the supply on the market was reduced due to Hurricane Ida, which led to the suspension and prolonged recovery of production in the Gulf of Mexico. The situation has been exacerbated by the energy crisis in Europe, where gas prices have reached record highs, and in Asia, which is already experiencing power outages.