The oil prices continue to rise in September 2021 due to various concerns. After the damage due to Hurricane Ida, the US output has been affected. Moreover, there are expectations of very high demand as many sectors, including the transportation sector, have started working in full swing. Brent crude rose by 0.5% or 33 cents. It is standing at $73.25 a barrel. The US West Texas Intermediate (WTI) also managed to add 0.5% or 32 cents. It was standing at $70.04. It was quite interesting to note that both markets were performing very impressively. Offshore oil production in the US has been affected since late August, but steps are being taken to stabilize the situation.
The demand for crude oil has gone up after oil refineries in Louisiana resumed their operations. The operations in most of the refineries were affected due to the storm. However, now, the operations have restarted. Sometimes small natural factors such as storms affect activities such as extraction of natural resources. However, the good news is that in the last week the number of operational oil rigs in the USA has gone up. This is a clear indication that oil production is likely to rise in the following weeks. Apart from the impact of Ida, there are other situations to analyze. This week, the market will also keep its focus on potential revisions. For many investors, it is also important to see how OPEC is reacting to the oil demand outlook. The pandemic is slowly losing its impact, but market experts are looking for more clarity. The relationship between Iran and the Western hemisphere also affects the overall oil supply. Meanwhile, China has made an announcement to release oil from its strategic reserve.
The dollar has strengthened, and now the investors are looking for the latest US data to collect more clues regarding the US. Federal Reserve’s timetable. There was a very minor fluctuation in the gold. Hence, the dollar that moves inversely to the yellow metal managed to inch up. The US dollar is regarded as safe-haven, but it also affects the price of other commodities. The condition of silver was stable. The market experts are confident that the US dollar will perform impressively against the British pound and the Euro. To balance the situation, next year the Bank of England can consider a rate hike. The investors are anxiously waiting for the US consumer price index data. According to latest reports, in the month of August, the producer price index (PPI) grew 0.7% month-on-month. It made a gain of 8.3% in comparison to previous years.