In the aftermath of category 5 hurricanes that hit the U.S. and the Caribbean, oil supply and the markets have seen change.
Brent stocks, the industry standard for oil prices saw the price up by 16 cents at US$57.39, nearly 0.28 percent since its last closing.
“We will see oil prices higher by 10 percent by the end of the year. We have started to accumulate strong positions within the oil sector,” Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers, said.
“Oil market has moved into modest under-supply and we expect this will persist at least through the end of the year,” US investment bank Jefferies said, Reuters reported.
TheU.S. which is the third largest oil producer in the world might ramp up its oil imports.
“The highlight you need to watch for the next few months is going to be more record-breaking exports of crude oil,” Tom Kloza of the Oil Price Information Service said, CNBC reported.
The amount of U.S. oil rigs drilling for new production fell by seven to 736 during the week of Oct.20., General Electric Co’s (GE.N), Baker Hughes energy services firm, said.
“U.S. production was also recently impacted by a hurricane for the second time in as many months and the number of U.S. drilling rigs declined for the third week in a row,” O‘Loughlin said.
In Asia, India and China remain among the top three exporters of the fuel in the world. India imported a record 4.83 million barrels per day (bpd) of oil in September, Reuters reported.
“Three main factors are driving China’s insatiable appetite for crude: declining domestic production, increased access to imports and exports for independent refiners, and building up the strategic petroleum reserve,” Britain’s Barclays bank said.
The oil supplies are limited, with Iraq, the world’s fourth-largest producer being deep in conflict as the Kurds and government forces continue to fight and the production being withheld as part of an agreement between the Organization of the Petroleum Exporting Countries, Opec and non-Opec producers in an effort to tighten the market.
Compiled and Published by GIB KNIGHT
Gib Knight is a private oil and gas investor and consultant, providing clients advanced analytics and building innovative visual business intelligence solutions to visualize the results, across a broad spectrum of regulatory filings and production data in Oklahoma and Texas. He is the founder of OklahomaMinerals.com, an online resource designed for mineral owners in Oklahoma.