(MENAFN- The Al-Attiyah Foundation) Brent and U.S. West Texas Intermediate (WTI) gained 2% and 1% on a weekly basis, marking the first weekly rise since August and following nine-month lows hit last week. On Friday, Brent crude futures fell 53 cents to $87.96 a barrel, while U.S. WTI crude futures fell $1.74 to $79.49. Both contracts rose by more than $1 during the session but dropped on news that OPEC's oil output rose in September to its highest since 2020, surpassing a pledged hike for the month. Price swings have become the norm as market players juggle worries over the global economy and the prospect of tightening oil supplies, analysts said. Still, the market has seen support from the prospect of OPEC and its allied producers cutting production quotas by between 500,000 and 1 million barrels per day at their October 5 meeting. Analysts expect a production cut because demand fears linked to a possible global economic slowdown and rising interest rates have weighed on crude prices. Meanwhile, top White House officials met on Friday with executives of eight oil companies to discuss Hurricane Ian and low gasoline inventories. President Joe Biden warned oil companies not to use the storm as a pretext to raise gasoline prices.
Asian LNG Prices Slide, European Prices to Remain High
Asian spot liquefied natural gas prices fell last week as sufficient supply and muted Chinese demand have disconnected the market from Europe, where gas prices rose after leaks were found on the Nord Stream pipelines. The average LNG price for November delivery into north-east Asia was $38.5 per mmBtu, down $3.50 from the previous week, industry sources estimated. Asian prices have remained somewhat indifferent to the Nord Stream news due in part to a muted China and comfortable North Asia supplies. In Europe, prices rose earlier last week after the Nord Stream gas pipeline system on the bed of the Baltic Sea sustained unprecedented damage, with no clarity when the system would be restored. Sweden's Maritime Authority issued a warning about two leaks in the Nord Stream 1 pipeline, shortly after a leak on the nearby Nord Stream 2 pipeline was discovered that prompted Denmark to restrict shipping in a five nautical mile radius. Flows via the pipeline, which had been working at only 20% of its capacity since July, were halted at the end of August and were not relaunched following maintenance. However, the incidents have raised concerns over the safety of the EU gas infrastructure.
By: The Al-Attiyah Foundation
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