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Crude futures climb for ninth straight week

By Daniel Tyson

19:01, 22 October 2021

Oil derrick in setting sun
Crude futures continued their winning streak – Photo: Shutterstock

Crude is about to reach its longest streak of weekly price advances in six years as US supplies shrink and OPEC+ increases supply slightly.

On Friday afternoon, December 2021 future deliveries of West Texas Intermediate continued to climb to $83.62 a barrel, up 1.4%, while Brent crude was up 0.97% to $85.44 on the NYMEX.

Crude futures continued their winning streak for the ninth straight week.

At the beginning of the week, oil prices slumped a bit but rallied on Wednesday and Thursday upon the release of the US Energy Information Administration’s weekly report showing weekly declines with crude supply hitting its lowest level since 2018.

Analysts forecast tightening over the near-term as OPEC+ will most likely continue to release only an extra 400,000 barrels a day until the end of the year.

Biden’s comments

US President Joe Biden said Thursday American motorists should expect higher gas prices until next year due to OPEC+’s refusal to release more oil.

“I don’t see anything that’s going to happen in the meantime that’s going to significantly reduce gas prices,” Biden said during a CNN town hall meeting.

The president followed that by saying he might release oil from the strategic reserve, which could lower prices by about 18 cents a gallon, but in most areas of the US a gallon of gas would still be north of $3.

On Friday afternoon, Reformulated Blendstock for Oxygenate Blending (RBOB) was down 0.08% to $2.47 a gallon.

Meanwhile, US stockpiles are at record lows. The last time levels were so low, crude prices were pushing $100 a barrel.


The president could be wrong, of course. Oil futures could stall soon. On Thursday, US weather bureau National Oceanic and Atmospheric Administration predicted a warmer than normal winter for the US, with a drier and warmer winter expected across the South and Southeast.

Oil - Brent

77.24 Price
+1.530% 1D Chg, %
Long position overnight fee -0.0122%
Short position overnight fee -0.0098%
Overnight fee time 21:00 (UTC)
Spread 0.04

Natural Gas

2.42 Price
-1.910% 1D Chg, %
Long position overnight fee -0.1130%
Short position overnight fee 0.0911%
Overnight fee time 21:00 (UTC)
Spread 0.005


23.34 Price
+2.540% 1D Chg, %
Long position overnight fee -0.0185%
Short position overnight fee 0.0103%
Overnight fee time 21:00 (UTC)
Spread 0.040

Oil - Crude

72.94 Price
+1.570% 1D Chg, %
Long position overnight fee -0.0154%
Short position overnight fee -0.0065%
Overnight fee time 21:00 (UTC)
Spread 0.04

“This would somewhat alleviate the situation on the energy markets because less heating oil and gas would then be needed for heating purposes,” according to a client note from Commerzbank.

Historic prices

The oil field service giant Schlumberger on Friday reported $5.85bn in revenue during the third quarter, up 4% sequentially and 11% from the third quarter of last year.

Schlumberger CEO Olivier Le Peuch summed up oil’s historic pricing rise this way: “The industry macro fundamentals have visibly strengthened this year, particularly in recent weeks – with demand recovery, oil and gas commodity prices at recent highs, low inventory levels and encouraging trends in pandemic containment efforts. Absent a recession or pandemic-related setback, these favourable conditions are expected to materially drive investment over the next few years – particularly internationally and result in exceptional multi-year capital spending growth globally, both on land and offshore.”

Read more: Crude futures make Wednesday morning comeback

The difference between stocks and CFDs

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage)

which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

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