- Crude oil prices climbed up on Thursday.
- The prices of crude oil are boosted by surging natural gas prices.
- OPEC+ decided to stick to its previous agreement to increase the output by 400,000 bpd per month.
Crude oil prices climbed up on Thursday after Saudi Arabia denied the call for additional OPEC+ supply. The prices were additionally boosted by surging natural gas prices which is prompting gas-to-oil utilization in the power generation sector, as per the International Energy Agency (IEA). December delivery Brent Crude oil futures last traded at US$84.48 per barrel down 0.36%, whereas November delivery WTI crude oil futures traded 0.54% down at US$81.77 per barrel as of 15 October 2021 at 11:52 AM AEDT.
Growing energy demand
The oil demand is expected to rise by nearly half a million barrels per day, as the industries and the global power sector is switching from a relatively more expensive source of energy to crude oil, as per the IEA.
In its monthly report, the agency increased the global oil demand forecast in 2022 by 210,000bpd and anticipates that oil demand will land at 99.6 million bpd in the next year.
OPEC | Source: © Gumpapa | Megapixl.com
OPEC along with its allies, together known as OPEC+ at the meeting held this month, decided to stick to its previous agreement to increase the output by 400,000 bpd per month.
Additionally, the US crude stocks rose magnificently by 6 million barrels, higher than the 702,000 barrels increase as expected by the analysts.
The shale producers in the US have been reluctant to invest in increasing the output followed by years of weak returns. EIA said that the output would rebound in 2022 to 11.7 million bpd.
Crude oil prices jumped on Thursday on increasing demand for oil in place of highly expensive energy sources, primarily in the power generation sector.