Oil futures rose again Thursday, after the market ruled out the possibility of withdrawing the United States from emergency reserves of crude, or halting exports to ease supply tightness.
Brent crude futures rose 87 cents, or 1.1%, to $81.95 a barrel, and US crude also rose 87 cents, or 1.1%, to $87.30 a barrel. The US Department of Energy said all “options are always on the table” to address tight market supplies.
The Ministry of Energy’s comment came amid questions about the possibility of President Joe Biden’s administration studying withdrawing from the strategic oil reserve or seeking to stop exports to reduce crude oil prices.
On the other hand, the White House National Security Adviser urged energy providers to increase supplies to meet demand.
The United States has withdrawn from the strategic reserve on occasion, after hurricanes or other supply disruptions.
However, since ending a 40-year ban on crude oil exports in 2015, the country has become an important exporter, and it has not reduced exports since.
The Organization of the Petroleum Exporting Countries and its allies OPEC + agreed this week to increase production only gradually, pushing crude prices to their highest levels in years.
Oil markets are rising due to supply shortages around the world, as demand has recovered more quickly than expected from the Corona pandemic in major import markets such as China.
“The oil market looks tighter in the short term, indicating that prices will remain well supported through the end of the year,” ING analyst Warren Patterson said in a note.
Major producers and the International Energy Agency believe that demand for crude could rise from 150,000 barrels per day to 500,000 barrels per day in the coming months, as natural gas users switch to oil, due to higher gas prices.
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