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Oil Mixed, Losses Capped by Solid U.S. Demand, Global Energy Crunch -Breaking

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© Reuters.

By Gina Lee

Investing.com – Oil was mixed Thursday morning in Asia, giving up some earlier gains as some investors scooped up profits from a recent rally. However, the oil market was able to limit losses due to a shift from fuel oil from coal to gas in the face of a worldwide shortage.

By 1:05 PM ET (8:05 GMT), the price of $85.75 had dropped 0.08%, while it rose 0.12% by $83.52.

“We saw some correction with Brent futures, but overall sentiment remained bullish as there have been no large increases in output by the U.S. or the Organization of the Petroleum Exporting Countries (OPEC),” Rakuten Securities commodity analyst Satoru Yoshida told Reuters.

He said Brent could rise to $90 per barrel in the future as global oil markets remain tight. U.S. efforts at decarbonization will limit output growth while increasing demand will result from more power companies switching fuels from coal and natural gas.

The tightening of supply has led to an increase in prices. OPEC is sticking with its slow growth plan. While oil refiners increase their output in order to satisfy rising demand across Asia, Europe and the U.S. they will be limited by high plant prices and maintenance during the fourth quarter 2021.

Meanwhile, Wednesday’s showed a build of 431,000 barrels in the week to Oct. 15. Investing.com forecasts a 1.857 million barrel build. A 6.088 million barrel build was recorded during the week before.

The day before, a report showed that there was 3.294 Million barrels.

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