Benchmark crude oil prices are moderately higher on Tuesday morning due to ongoing concerns over fuel shortages in the global market.
The price of September Brent futures on London’s ICE Futures exchange is at $82.95 a barrel by 8:05 a.m. Q2, up 21 cents (0.25%) from the previous session’s close. On Monday, these contracts rose in price by $1.67 (2.2%) – to $82.74 per barrel, ending trading at the maximum mark since April 19.
Quotes of futures for WTI crude oil for September at the electronic trading of the New York Mercantile Exchange (NYMEX) by the specified time rose by 24 cents (0.3%) and amounted to $78.98 per barrel. They rose $1.67 (2.2%) to $78.74 a barrel at the end of the previous session, hitting their highest since April 24.
“The unquenchable thirst for summer oil created a snowball effect that led to a multi-week rally,” said Manish Raj, managing director of Velandera Energy Partners. – Supply cuts from Saudi Arabia and Russia have led to increased demand for U.S. WTI crude from Asian buyers.”
According to him, the current situation was influenced by several factors, including growing demand in the U.S. during the summer, strong economic recovery in China and positive outlook for demand in India, where supply remains tight.
Record high demand in the near term will lead to a significant shortage of oil in the market and increase prices for the Brent grade to $86 per barrel by the end of the year, analysts at Goldman Sachs Group believe.
Meanwhile, data from oilfield services company Baker Hughes showed that last week the number of active drilling rigs in the U.S. decreased by 7 units to 530.
