Oil Continues to Rise Fueled by Mexican Oil Rig Fire

In New York, the US barrel of WTIWTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil used as a standard in setting the price of crude and as a raw material for oil futures contracts. with the Nymex (New York Mercantile Exchange), the stock exchange specializing in energy. for the month of October also gained 2.89% or 1.90 dollars, to 67.54 dollars.

BrentBRENT Brent or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for fixing oil prices. closed above $ 70 for the first time since Aug. 12, revived by two speculative buying sessions that erased last week’s tumble over concerns about the economic recovery.

The rise in crude prices is also following the fire on Sunday of a Pemex platform installed in the Bay of Campeche, in the southern Gulf of Mexico, according to James Williams, of the firm WTRG Economics.

The disaster, which left five dead and two missing, affected an energy supply platform that supplied an entire oil field.

Although under control an hour after it was triggered, it forced Pemex to suspend the drilling activity of 125 wells in the area, suddenly reducing the production of the Mexican group by more than 400,000 barrels per day, according to a note. from the rating agency Fitch Ratings.

This roughly corresponds to the daily increase set by the Organization of the Petroleum Exporting Countries (OPEC) and their OPEC + allies, which will raise their overall production by 400,000 barrels per day each month, said James Williams. .

Pemex did not indicate when the powerless Ku-Maloob-Zaap (KMZ) field wells would return to service.

The market is also preparing for the next meeting of OPEC and its allies, on September 1, in a volatile context, where changes in the health situation are blowing hot and cold alternately on the food market. ‘black gold.

For James Williams, the central scenario is that of maintaining the schedule of successive increases in production announced in July, unless prices drop significantly by then, below $ 60 for WTIWTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil used as a standard in crude pricing and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange), the stock exchange specialized in energy.