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Oil prices remained high on Tuesday, after beginning the week at their highest level in years.
Brent Oil Futures were trading at $84.33 at 11:07 p.m. ET (3:08 a.m. GMT), while WTI Futures were up 0.04 percent at $81.72. Last week, both Brent and WTI futures increased by at least 3%.
Analysts predict that as winter approaches in the northern hemisphere, oil, coal, and gas prices will remain elevated. “A severe winter has the potential to propel energy prices much higher,” Citi Research commodities analysts wrote in a report, raising their projection for Brent oil for the remainder of 2021 to $85 per barrel from $74 per barrel.
According to AccuWeather.com, the temperature in China is expected to drop to around freezing in the north.
However, increased US oil output may put a floor under prices. According to an official source, a further increase in production at the largest shale formation in the United States is projected next month.
China’s slowing economic development may have an influence on prices, as GDP in the third quarter of 2021 increased by 0.2 percent quarter on quarter and 4.9 percent year on year.
Story by : Norvisi Mawunyegah