SINGAPORE: US oil prices rose for a fifth day on Wednesday to their highest since 2014 amid global concerns about energy supply on signs of tightness in crude, natural gas and coal markets.
Brent crude prices also climbed for a fourth day on the supply anxiety, particularly after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided on Monday to say with their planned output increase rather than boosting it further, report agencies.
Brent crude added 0.15%, or 12 cents $82.68 a barrel after rising to a three-year high in the previous session.
On Monday, OPEC+ agreed to adhere to its July pact to boost output by 400,000 barrels per day (bpd) each month until at least April 2022, phasing out 5.8 million bpd of existing production cuts.
“Crude oil extended gains as investors fret about tightness in the market as the energy crisis hikes demand,” ANZ said in a note.
“The (OPEC+) increase was well below what the market was expecting, considering the energy crunch across the globe. Not surprisingly, there is speculation that OPEC will be forced to move before the next scheduled meeting if demand continues to surge.”
Late last month, the OPEC+ Joint Technical Committee (JTC) said it expected a 1.1 million bpd supply deficit this year, which could turn into a 1.4 million bpd surplus next year.
Despite pressure to ramp up output, OPEC+ was concerned that a fourth global wave of COVID-19 infections could hit the demand recovery, a source told Reuters a little before Monday’s talks.
However, inventory data from the United States, the world’s biggest oil consumer, showed some signs of slowing fuel demand.
The American Petroleum Institute reported U.S. oil inventories rose by 951,000 barrels in the week to Oct. 1, website Oilprice.com reported on Tuesday.