Crude oil prices reach 3-year high on US supply disruptions

Oil exploration rig

Highlights

  • Crude oil rose to a near three-year highest levels.
  • US oil refineries have replaced Gulf crude with supplies from Canada and Iraq.
  • Members of OPEC+ struggle to raise their output.

Crude oil rose to a near three-year highest levels on Monday. Brent Crude oil futures for December delivery last traded at US$78.05 a barrel, up 1.06%, whereas WTI crude oil futures for November delivery traded 1.15% down at US$74.83 per barrel on 27 September 2021 at 10:38 AM AEST.

The significant rise in the prices of crude oil is underpinned by global output disruptions, which has also led to a major decline in crude oil inventories. US oil refineries have replaced Gulf supplies crude with Canadian and Iraqi crude amid supply disruptions in the US Gulf Coast. Additionally, OPEC+ member countries were also unable to raise their output due to maintenance delays.

Bottom Line

Crude oil price surged to near three-year high amid supply disruptions in the US Gulf Coast.

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