Commodities and Futures News

Crude Oil Higher on Global Demand Optimism

2022.10.27 09:30



© Reuters.

By Peter Nurse   

Investing.com — Oil prices rose Thursday, adding to the previous session’s sharp gains, boosted by optimism generated by record exports as well as doubts about the effectiveness of the proposed price cap on Russian oil.

By 09:10 ET (13:10 GMT), U.S. crude futures traded 1.7% higher at $89.42 a barrel, while the contract rose 1.2% to $94.91. 

Both contracts gained around 3% last session, putting them on course for a weekly gain, after data released by the Energy Information Administration on Wednesday showed U.S. crude exports surging to a record-high 5.1 million barrels a day, suggesting resilience in global demand despite rising and interest rates.

“Weekly trade flows may be less accurate and do fluctuate widely, but it is no surprise that the U.S. is emerging as the barrel of last resort as Europe pivots away from Russia,” analysts at Citi said, in a note.

This positive tone continued Thursday, boosted by the news that the U.S. economy, the world’s largest, rebounded from six months of contraction in the third quarter, as grew by 2.6% on a year-on-year basis. 

This represented a rebound from declines of 0.6% and 1.6% in the first and second quarters, respectively, and pointed to economic resilience in the U.S., the largest consumer of crude in the world, despite aggressive interest rate raises by the Federal Reserve.

Meanwhile, U.S. and Western officials are said to be finalizing plans to impose a cap on Russian oil prices, but doubts are emerging about how effective such a policy will be.

Bloomberg News reported that these officials were being forced to scale back plans for the price cap, with fewer participating countries and a higher price level.

This follows a warning from the World Bank that any plan will need active participation of emerging market economies to be effective.

Elsewhere, an IEA report forecasting a peak in global demand for fossil fuels within a decade as the energy crisis sparked by the Ukraine war speeds up the transition to green energy had little impact on sentiment.

In corporate news, Europe’s two largest energy companies Shell (LON:) and TotalEnergies SE (EPA:) reported profits of more than $9 billion in the third quarter, benefiting from the high fuel prices.



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 96,848.95 2.03%
ethereum
Ethereum (ETH) $ 3,299.51 4.88%
tether
Tether (USDT) $ 1.00 0.11%
solana
Solana (SOL) $ 245.64 5.94%
bnb
BNB (BNB) $ 645.37 4.26%
xrp
XRP (XRP) $ 1.35 13.87%
dogecoin
Dogecoin (DOGE) $ 0.409168 12.10%
usd-coin
USDC (USDC) $ 0.999454 0.17%
cardano
Cardano (ADA) $ 0.980725 11.59%
staked-ether
Lido Staked Ether (STETH) $ 3,301.87 4.69%
tron
TRON (TRX) $ 0.20328 8.50%
avalanche-2
Avalanche (AVAX) $ 39.66 7.38%
stellar
Stellar (XLM) $ 0.50839 10.41%
the-open-network
Toncoin (TON) $ 5.95 2.13%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 10.34%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,930.31 3.99%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 96,565.87 1.53%
polkadot
Polkadot (DOT) $ 8.59 5.00%
chainlink
Chainlink (LINK) $ 16.52 5.70%
bitcoin-cash
Bitcoin Cash (BCH) $ 487.71 10.00%
weth
WETH (WETH) $ 3,297.03 4.89%
sui
Sui (SUI) $ 3.25 10.44%
pepe
Pepe (PEPE) $ 0.000019 11.66%
leo-token
LEO Token (LEO) $ 8.71 0.92%
near
NEAR Protocol (NEAR) $ 6.25 2.13%
litecoin
Litecoin (LTC) $ 94.04 8.79%
aptos
Aptos (APT) $ 11.82 8.76%
uniswap
Uniswap (UNI) $ 10.34 4.06%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,491.15 3.88%
hedera-hashgraph
Hedera (HBAR) $ 0.140704 6.79%
usds
USDS (USDS) $ 1.00 0.08%
internet-computer
Internet Computer (ICP) $ 10.68 7.92%
crypto-com-chain
Cronos (CRO) $ 0.184032 9.63%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.537201 6.85%
ethereum-classic
Ethereum Classic (ETC) $ 27.72 9.67%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.20%
render-token
Render (RENDER) $ 7.38 7.48%
kaspa
Kaspa (KAS) $ 0.147474 8.41%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 0.47%
bittensor
Bittensor (TAO) $ 495.29 8.56%
whitebit
WhiteBIT Coin (WBT) $ 24.40 1.22%
dai
Dai (DAI) $ 0.999886 0.19%
celestia
Celestia (TIA) $ 7.90 22.86%
arbitrum
Arbitrum (ARB) $ 0.813741 6.79%
bonk
Bonk (BONK) $ 0.000044 14.34%
mantra-dao
MANTRA (OM) $ 3.66 3.82%
cosmos
Cosmos Hub (ATOM) $ 8.36 2.04%
vechain
VeChain (VET) $ 0.040189 8.61%
filecoin
Filecoin (FIL) $ 5.35 0.88%
okb
OKB (OKB) $ 52.51 2.30%