Almasalah

  In Almasalah 

Oil prices jump to $78 a barrel

Oil prices rose for the third week in a row, Saturday, September 25, 2021, to reach their highest level in three years, as disruptions in global production forced energy companies to withdraw large quantities of crude from stocks.

Brent crude futures rose 84 cents, or 1.1 percent, to settle at $78.09 a barrel, while US West Texas Intermediate crude rose 68 cents, or 0.9 percent, to settle at $73.98.

This is the highest close for Brent since October 2018 and for WTI since July 2021, both higher for the second day in a row.

This was the third week of gains for Brent and the fifth for West Texas Intermediate, as production was disrupted in the US Gulf Coast by Hurricane Ida in late August.

Louise Dixon, chief oil market analyst at Rystad Energy, said: “With oil prices heading to complete another week of gains, the market is bearing in mind the long-term impact of supply disruptions and the potential drawdown of inventories that will be necessary to meet refinery demand.”

US energy companies added ten oil drilling rigs this week, raising the number of oil and gas rigs for the 14th consecutive month.