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Market News Production is restricted by the hurricane, oil distribution soared 11%, the biggest weekly increase in more than a year
Production is restricted by the hurricane, oil distribution soared 11%, the biggest weekly increase in more than a year
On August 27, oil futures rose 1.63 U.S. dollars and settled at 72.7 U.S. dollars per barrel. This week’s cumulative increase was more than 11%, the largest weekly increase since June last year. The forecast said there will be a major hurricane at the beginning of next week. Oil producers have shut down 59% of their capacity in the Gulf of Mexico on Friday to provide impetus to oil prices; at the same time, the weakness of the U.S. dollar has also helped increase the attractiveness of dollar-denominated global commodities.
2021-08-28
8328
Friday (August 27) Bursa oil futures rose 1.63 US dollars, an increase of 2.3%, and settled at 72.7 US dollars per barrel; U.S. oil rose 1.32 US dollars, an increase of 2%, to close at 68.74 US dollars per barrel. This week, Bursa oil has risen by more than 11%, while U.S. oil has risen by more than 10%, both setting the largest weekly percentage increase since June last year. The forecast says a major hurricane will strike early next week. Oil producers have shut down 59% of the Gulf of Mexico's capacity on Friday to provide momentum for rising oil prices; at the same time, the weakening of the U.S. dollar has also helped increase the attractiveness of dollar-denominated global commodities. .
The National Hurricane Center said that when Hurricane Ida approaches the northern coast of the Gulf of Mexico, it may be close to the intensity of the "major hurricane". Hurricane Ida passed through the Cayman Islands, and hurricane warnings have been issued in parts of the northern Gulf coast. As the hurricane approaches, oil producers in the U.S. Gulf of Mexico have begun to stop production.
According to data from the US Bureau of Security and Environmental Enforcement (BSEE), major producers in the US Gulf of Mexico that have closed or are shutting down production include BP, Shell, and Chevron, which have successively closed 59% of the Gulf of Mexico's production capacity. Offshore oil wells in the Gulf of Mexico account for 17% of U.S. crude oil production, and more than 45% of the U.S. refining capacity is located on the Gulf Coast.
Andrew Lebow, senior partner of Commodity Research Group, said, "Obviously, hurricanes are currently the focus of the market, at least in the short term."
The ANZ Banking Research Center pointed out in a report that with the formation of storms in the Caribbean, the market may have more urgent concerns. It is expected to become a powerful hurricane that may cause severe damage in the Gulf of Mexico and Texas early next week.
The dollar fell to its lowest level in a week, supporting oil prices. Earlier, Fed Chairman Powell made a speech confirming that the US economy is recovering and explaining why it is not in a hurry to tighten monetary policy. He explained in detail why he believes that the surge in inflation is temporary. He did not disclose when the Fed plans to cut asset purchases, only saying that it may be "this year."
Energy services company Baker Hughes said the number of active drilling rigs in the United States increased by five this week to 410, the most since April 2020. The number of active rigs increased by 25 in August, the largest increase since January and the first consecutive 12-month increase since July 2017.
(Daily chart of oil distribution)
The National Hurricane Center said that when Hurricane Ida approaches the northern coast of the Gulf of Mexico, it may be close to the intensity of the "major hurricane". Hurricane Ida passed through the Cayman Islands, and hurricane warnings have been issued in parts of the northern Gulf coast. As the hurricane approaches, oil producers in the U.S. Gulf of Mexico have begun to stop production.
According to data from the US Bureau of Security and Environmental Enforcement (BSEE), major producers in the US Gulf of Mexico that have closed or are shutting down production include BP, Shell, and Chevron, which have successively closed 59% of the Gulf of Mexico's production capacity. Offshore oil wells in the Gulf of Mexico account for 17% of U.S. crude oil production, and more than 45% of the U.S. refining capacity is located on the Gulf Coast.
Andrew Lebow, senior partner of Commodity Research Group, said, "Obviously, hurricanes are currently the focus of the market, at least in the short term."
The ANZ Banking Research Center pointed out in a report that with the formation of storms in the Caribbean, the market may have more urgent concerns. It is expected to become a powerful hurricane that may cause severe damage in the Gulf of Mexico and Texas early next week.
The dollar fell to its lowest level in a week, supporting oil prices. Earlier, Fed Chairman Powell made a speech confirming that the US economy is recovering and explaining why it is not in a hurry to tighten monetary policy. He explained in detail why he believes that the surge in inflation is temporary. He did not disclose when the Fed plans to cut asset purchases, only saying that it may be "this year."
Energy services company Baker Hughes said the number of active drilling rigs in the United States increased by five this week to 410, the most since April 2020. The number of active rigs increased by 25 in August, the largest increase since January and the first consecutive 12-month increase since July 2017.
(Daily chart of oil distribution)
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