Oil prices rise on high demand
Global oil prices on October 11 morning rose by almost 2%, as high oil demand is supported primarily by expensive gas, according to trading data and analysts’ comments, Faktor.az informs referring to Prime agency.
As of 9:04 (GMT+4), the price of December futures for Brent crude rose by 1.63 percent to $83.74 per barrel, while the price of November futures for WTI oil grew 2.04% to $80.95 per barrel.
On October 11 morning, the previous week’s growth continues in the oil market, which is facilitated by the high demand for crude as an alternative to natural gas, which has greatly increased in price. So, in Europe, gas futures have more than doubled in price from the beginning of August to the end of September, and the all-time high was recorded on October 6 - $1,937 per 1,000 cubic meters. Though by the end of the week, prices had dropped to almost $1,000, but a serious impetus was given to find an alternative for gas.
In addition, at the latest OPEC+ meeting, the alliance decided not to speed up the increase in oil production. Since August, the alliance has been increasing production by 400,000 barrels per day every month, hoping to gradually remove these restrictions by the end of September 2022.
Oil prices continue to be supported by strong demand from some energy consumers who can use oil as an alternative to natural gas, as well as limited oil supplies from OPEC+, NAB analysts commented to the Wall Street Journal.