Market News U.S. crude oil continued to fall from high levels, dragged down by the strengthening of the U.S. dollar and the recovery of oil production capacity in the Gulf of Mexico
U.S. crude oil continued to fall from high levels, dragged down by the strengthening of the U.S. dollar and the recovery of oil production capacity in the Gulf of Mexico
On September 20, U.S. crude oil continued its decline last Friday and hit a three-day low, mainly because the US dollar index rose and crude oil production in the Gulf of Mexico continued to gradually recover from the impact of Hurricane Ida.
2021-09-20
10633
On Monday (September 20), U.S. crude oil continued last Friday’s decline and hit a three-day low. On the one hand, the U.S. dollar index continued to rise, and on the other hand, the number of U.S. drilling rigs increased, indicating that crude oil production in the Gulf of Mexico continued to increase from Hurricane Ida. Gradually recovered from the influence.
The U.S. dollar started this week strongly and is currently rising slightly, hitting a new high since August 23, and is expected to achieve three consecutive gains. Investors are cautious before the Federal Reserve and other central banks hold meetings.
Westpac analyst Imre Speizer said, “The dollar is showing some rebound.” He added that the support comes from expectations that the Fed is about to cut asset purchases, and it also comes from the cautious attitude when the stock market begins to turmoil. "Everyone is staring at the Fed, waiting for the signal to shrink."
The Fed will end its two-day policy meeting on Wednesday. The market generally predicts that the Fed will stick to the broad plan to start reductions this year, but will not provide details or schedules for at least one month.
Marshall Gittler of the brokerage firm BDSwiss said that only two Fed members need to change their minds, and the median forecast of its "dot plot" will reflect a rate hike next year.
The strong rise in the US dollar index has suppressed crude oil prices.
At the same time, oil production capacity in the Gulf of Mexico is constantly recovering. The US Bureau of Security and Environmental Enforcement (BSEE) estimated on Friday that 23.2% or approximately 422,078 barrels per day of oil in the Gulf of Mexico and 34% or approximately 76554 million cubic feet of natural gas production capacity are still closed due to the impact of the hurricane.
Rystad Energy's oil market analyst Nishant Bhushan said: "Oil prices have reached such high levels in the past few days, obviously due to supply disruptions and reduced inventories, so now U.S. oil production is recovering and oil prices are falling as expected."
He pointed out that demand concerns have also intensified. In order to prevent the epidemic, Japan has expanded the implementation of stricter blockade measures; a new wave of new crown virus has also broken out in some major Asian countries.
Bhushan said that now, as supply has increased and demand in the Asian market may have weakened, oil prices have naturally retreated the accumulated increase in response to the US hurricane season.
U.S. energy companies added oil and gas rigs for the second consecutive week this week. Baker Hughes said that as an early indicator of future production, the number of active oil and gas rigs increased by nine in the week ended September 17, to 512. , The highest level since April 2020, and twice the level at this time last year.
(U.S. crude oil daily chart)
At 11:27 GMT+8, US crude oil was quoted at US$71.25/barrel.
The U.S. dollar started this week strongly and is currently rising slightly, hitting a new high since August 23, and is expected to achieve three consecutive gains. Investors are cautious before the Federal Reserve and other central banks hold meetings.
Westpac analyst Imre Speizer said, “The dollar is showing some rebound.” He added that the support comes from expectations that the Fed is about to cut asset purchases, and it also comes from the cautious attitude when the stock market begins to turmoil. "Everyone is staring at the Fed, waiting for the signal to shrink."
The Fed will end its two-day policy meeting on Wednesday. The market generally predicts that the Fed will stick to the broad plan to start reductions this year, but will not provide details or schedules for at least one month.
Marshall Gittler of the brokerage firm BDSwiss said that only two Fed members need to change their minds, and the median forecast of its "dot plot" will reflect a rate hike next year.
The strong rise in the US dollar index has suppressed crude oil prices.
At the same time, oil production capacity in the Gulf of Mexico is constantly recovering. The US Bureau of Security and Environmental Enforcement (BSEE) estimated on Friday that 23.2% or approximately 422,078 barrels per day of oil in the Gulf of Mexico and 34% or approximately 76554 million cubic feet of natural gas production capacity are still closed due to the impact of the hurricane.
Rystad Energy's oil market analyst Nishant Bhushan said: "Oil prices have reached such high levels in the past few days, obviously due to supply disruptions and reduced inventories, so now U.S. oil production is recovering and oil prices are falling as expected."
He pointed out that demand concerns have also intensified. In order to prevent the epidemic, Japan has expanded the implementation of stricter blockade measures; a new wave of new crown virus has also broken out in some major Asian countries.
Bhushan said that now, as supply has increased and demand in the Asian market may have weakened, oil prices have naturally retreated the accumulated increase in response to the US hurricane season.
U.S. energy companies added oil and gas rigs for the second consecutive week this week. Baker Hughes said that as an early indicator of future production, the number of active oil and gas rigs increased by nine in the week ended September 17, to 512. , The highest level since April 2020, and twice the level at this time last year.
(U.S. crude oil daily chart)
At 11:27 GMT+8, US crude oil was quoted at US$71.25/barrel.
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