Main Topic: U.S. gas prices hit an eight-month high amid rising oil prices.
Key Points:
1. National average price for a gallon of regular unleaded climbed to $3.71, the highest level since November.
2. Gas prices are up by at least $0.15 cents in 16 states in the past week alone.
3. Surge in oil prices, production cuts by OPEC nations, and U.S. refinery outages contribute to the increase in gas prices.
China's slowing economy and worsening macroeconomic indicators may be good news for oil prices, as it could lead to changes in monetary policies and stimulate global demand for oil. Investing in oil ETFs, particularly the Energy Select SPDR Fund (XLE), which includes stable and profitable companies, may be a reliable option. There are risks involved, but with tight oil supply and central banks' desire to avoid an economic downturn, oil assets could still be favorable.
U.S. crude oil stocks have reached their lowest level this year and are expected to decrease further, leading to a tight crude oil market and a potential increase in global oil prices.
Oil prices rose to their highest level in over six months due to expectations of tightening supplies, with Saudi Arabia expected to extend its voluntary oil production cut and Russia agreeing to cut oil exports next month.
Oil prices have climbed 6% this week, with the world's top producers cutting output in a bid to boost prices and Russia set to announce further output cuts next week.
Major commodities trader Trafigura Group warns that oil prices could see a spike due to higher interest rates and underinvestment in the market.
Crude oil prices remain high, supported by production cuts and a decrease in inventory, while the WTI futures contract reached a 10-month peak at $86.09 and the Brent contract traded above $89 for the first time since January.
The rebounding crude oil prices and fading annual base effects suggest that energy prices may become a headwind for global markets, potentially complicating the battle against inflation and tightening monetary policies.
Oil prices could reach triple-digit territory by next year if Russia and Saudi Arabia maintain their aggressive supply cuts, according to Goldman Sachs, with Brent crude potentially climbing to $107 a barrel by December 2024.
Key energy stocks are recommended for purchase as oil prices reach their highest levels of the year, according to Morgan Stanley.
Oil prices reach new highs in 2023 due to supply constraints caused by output reductions from Saudi Arabia and Russia, raising concerns about global inventory shortages and potential inflationary pressures.
Demand for fossil fuels is expected to reach an all-time high before 2030, despite progress in the fight against climate change, according to Fatih Birol, Executive Director of the International Energy Agency.
Oil prices surged on Thursday, with U.S. crude surpassing $90 a barrel, as the possibility of a tighter supply increased, driven by extended output cuts from Saudi Arabia and Russia.
Oil prices hit a 3-month high as OPEC maintains tight supply, leading to the threat of higher gasoline prices and increased inflation.
Oil is on track for a third consecutive weekly gain, surpassing $90 per barrel for the first time in 10 months, driven by positive data from China and anticipation of the Federal Reserve's decision on inflation in the US.
The demand for oil remains strong globally, making energy companies a good investment option with shareholder-friendly dividend policies, including Devon Energy, Enbridge, and Chevron.
Oil prices continue to rise as OPEC+ supply cuts tighten the market, with Brent crude surpassing $94 a barrel and speculators increasing bullish wagers on Brent and West Texas Intermediate, leading to concerns about inflationary pressures.
Gasoline prices are rising due to oil supply cuts in Saudi Arabia and Russia, as well as flooding in Libya, but some experts believe that increasing oil prices will not have a significant impact on the US economy and do not expect them to rise much higher in the next year or two due to factors such as increased US oil production, slow global economic growth, and the green energy transition. However, high oil prices can lead to higher inflation, potential recession, and could influence the Federal Reserve to raise interest rates, but the impact may not be as severe as in the past, and some experts recommend investing in the energy transition and adopting a more defensive investment strategy.
Top Saudi Arabian and U.S. oil producers Aramco and Exxon Mobil have pushed back forecasts of peak oil demand and emphasized the need for continued investment in conventional oil and gas, stating that the energy transition will require more time and investment.
Crude oil prices reach new highs despite concerns about China's economy and tightened monetary policies, with the oil market structure indicating strong demand and potential support for higher prices.
Chevron CEO says the economy can handle rising oil prices, with prices on track to reach $100 per barrel due to supply constraints and a resilient global economy.
Oil prices dipped after reaching a 10-month high due to profit taking and anticipation of a Fed decision on interest rates, but analysts remain bullish on the future of oil.
Oil prices reaching $95 per barrel, the highest level since November 2022, pose a setback for Rishi Sunak's goal of halving inflation, with analysts predicting a 7.1% rise in consumer prices in August due to petrol price increases, adding to inflationary pressures and potentially influencing the Bank of England's interest rate decision.
Crude prices are expected to receive a boost as stockpiles at the key US storage hub in Cushing, Oklahoma, are at risk of reaching the lowest level in nearly a decade, potentially leading to a return of $100 oil by year-end.
Oil traders have been heavily buying crude and fuel futures over the past four weeks, leading to a ratio of bullish to bearish bets on oil and fuels of almost 8:1, indicating that oil prices may be due for a correction.
Oil prices rose on Tuesday amid tight supplies and speculation over what $100 oil could do to the economy, with JPMorgan economists projecting a potential impact on global GDP growth if prices remain elevated.
Oil majors ExxonMobil, Chevron, and BP are near buy points as U.S. crude oil prices continue to rise above $90 per barrel.
Summary: The mounting shortage of oil in a major U.S. oil town is causing disruption in energy markets, leading to a surge in U.S. oil prices.
Oil prices reached their highest level in over a year as crude stocks at a key storage hub in Oklahoma fell to their lowest level since July 2022, signaling a potential "rough" period for crude oil supplies into the market and a sustained high level of oil prices for the rest of the year.
A spike in crude oil prices to the highest level of the year adds to the challenges faced by world markets, leaving investors turning to the Federal Reserve chair for reassurance amidst concerns over inflation, a potential government shutdown, unresolved autoworker strikes, and the Chinese property sector bust.
Jim Cramer suggests that the stock market could rally due to a downtrend in oil prices, with major indexes experiencing gains.
Oil prices hit their highest levels in over a year as ongoing production cuts raise concerns about the global economy, while the specter of $100 oil looms and supply tightness becomes apparent with reduced stockpiles and increased refining. Higher interest rates may dampen crude demand, but for now, the focus remains on supply.
Oil prices continue to rally due to tighter supply and rising demand, while the upcoming week features key events such as OPEC+ meeting, earnings updates from various companies, and conferences in the technology and healthcare sectors.
In Q3, crude oil prices experienced significant gains, with WTI crude and Brent crude being the best-performing assets, although concerns regarding high prices potentially decreasing demand arise due to a drop in gasoline consumption and airline sales.
The recent increase in oil prices has analysts debating whether the rally will continue or fizzle out, with the bulls predicting prices in triple digits and the bears foreseeing a drop below $90 by Christmas, but it is expected that the market will be tight until January before the bears gain the upper hand next year.
OPEC has raised its long-term forecast for global oil demand, predicting that it will reach 116 million barrels per day by 2045 and requiring $14 trillion in investment to meet this upswing, despite the expansion of renewable energy technologies.
Oil prices rose around 1% on Thursday, supported by expectations that U.S. interest rates had peaked, but gains were limited by a lower demand growth forecast for next year from the International Energy Agency and higher U.S. inventories.
