By John Kemp. Petroleum futures and options saw another influx of hedge fund inflows last week as renewed bullishness about output restrictions overcame concerns about the already-high level of prices. Hedge funds and other money managers purchased the equivalent of 10 million barrels in the six most important futures and options contracts in the week to Oct. 19.
- Goldman Sachs said a strong rebound in global oil demand could push Brent crude oil prices above its year-end forecast of $90 per barrel. The U.S. investment bank said it expected oil demand will shortly reach pre-COVID-19 levels of around 100 million barrels per day as consumption in Asia rebounds after the Delta COVID-19 wave.
Demand has jumped for relatively cheap Canadian natural gas, driving exports to the United States to three-year highs and prompting producers in Canada to boost capital spending and drilling activity. Global natural gas prices have hit multi-year highs as world economies recover from last year's slowdown during the pandemic.
- Energy transition and peak demand predictions have spooked investors in oil, putting the prospect of peak production sooner than anticipated accompanied by wild price spikes. Key climate talks are set to begin at the end of this month in Glasgow, Scotland to tackle global warming under the 2015 Paris Agreement, with fossil fuel in policy-makers' crosshairs.
Demand has jumped for relatively cheap Canadian natural gas, driving exports to the United States to three-year highs and prompting producers in Canada to boost capital spending and drilling activity. Global natural gas prices have hit multi-year highs as world economies recover from last year's slowdown during the pandemic.
Oil prices gained more than 1% on Monday and reached multi-year highs, as tight global supply and strengthening fuel demand in the United States and beyond supported prices. Brent crude futures gained $1.01, or 1.2%, to $86.54 a barrel by 11:19 a.m. EDT. U.S. West Texas Intermediate crude futures rose $1.04, or 1.2%, to $84.80 a barrel, after reaching $85.41 a barrel, highest since October 2014.
* WTI touches highest since Oct 2014, Brent near 3-yr high. * Speculators raise U.S. crude oil net long positions -CFTC. * U.S. oil & gas rig count falls for first week in 7 -Baker
Hughes (BKR). By Yuka Obayashi.
U.S. energy firms this week cut oil and natural gas rigs for the first time in seven weeks even as oil prices rose to fresh seven year highs. The U.S. oil and gas rig count, an early indicator of future output, fell by 1 to 542 in the week to Oct. 22, energy services firm Baker Hughes Co (BKR) said in its closely followed report on Friday.
Spain plans more flights this winter than before the pandemic as an incipient recovery buoys hard-hit airlines, although surging fuel prices are a concern, the head of the country's ALA airline association said on Friday.
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