Oil prices picked up a steady pace of growth on Tuesday afternoon on concern due to reduced supply on the market.
The price of November futures for Brent crude on the London ICE Futures exchange by 14:35 Moscow time on Tuesday is $85.11 per barrel, which is $1.05 (1.25%) higher than the price at the close of the previous session.
The price of futures for WTI oil for November in electronic trading on the New York Mercantile Exchange (NYMEX) rose by this time by $0.91 (1.19%), to $77.62 per barrel.
Traders are monitoring the situation in the Gulf of Mexico in connection with the growing strength of Hurricane Yan. The US National Hurricane Center expects Yan to reach Florida by the middle of this week.
Chevron Corp. announced the suspension of two production platforms in the Gulf of Mexico due to the hurricane. The total volume of oil production from these two platforms is about 120,000 barrels per day.
British BP also intends to close two platforms in the region, each of which produces more than 100 thousand barrels per day.
In addition, the market takes into account that the OPEC + countries may cut oil production levels in order to spur price increases. Representatives of the association have repeatedly stated this before.
“I think OPEC will have to do this at some point in order to cut supply and push prices up,” said Gary Ross, head of Black Gold Investors.
In order to keep prices at $90 per barrel, OPEC will need to cut production by 1 million b/d, according to Ross’s calculations. In the meantime, OPEC + can cut production by at least 500 thousand b / d, according to UBS.
Meanwhile, the supply of petroleum products may be limited in France. The TotalEnergies refinery in Feisen will remain closed until at least mid-October, French trade union CGT said. The plant, which produces up to 40% of oil products in France, has been closed since September 16 due to technical problems.
In addition, two other TotalEnergies refineries in Fos-sur-Mer and Port-Jerome-Gravenchon have been closed since last week due to a workers’ strike.
