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IPFS News Link • Oil

Oil Surges To 5 Week High As BofA Sees Crude Hitting $100 In A "Very Cold Winter"

• by Tyler Durden

.... while some forecasting that physcial shortages could lead to sharply higher prices, while a cold winter could send oil as high as $100.

Brent crude rose 90 cents, or 1.2%, to $73.82 a barrel - the highest price since the first week of Autgust - while WTI crude was up 99 cents, or 1.4%, at $70.71. Brent has held between $70 and $74 a barrel over the past three weeks.

"Oil prices may not have much room to rise in the near term, but at the same time are not expected to crash soon," said Stephen Brennock of broker PVM.

Prices found some support from Hurricane Ida's impact on U.S. output as about three-quarters of the offshore oil production in the Gulf of Mexico, or about 1.4 million barrels per day, has remained halted since late August.

"Hurricane Ida was unique in having a net bullish impact on U.S. and global oil balances - with the impact on demand smaller than on production," Goldman Sachs analysts said in a note from last Friday. However, the number of rigs in operation in the United States grew in the latest week, energy service provider Baker Hughes said, indicating production could rise in coming weeks.