International oil prices rose 3.22 US dollars to close at 102.59 US dollars a barrel

Affected by the news that the inventories of oil in the Cushing region of Oklahoma, Oklahoma, will return to the Gulf of Mexico, New York oil prices rose sharply on the 16th, closing prices for the first time since June 9th.

On the same day, Enbridge and Enterprise Products Partners, all companies of the “Hailu” pipeline, said that they planned to close the “Road” pipeline in December and then change their current route from the Gulf of Mexico to Cushing to reverse their direction.

Raymond Carben, a senior oil trader at the New York Mercantile Exchange, said that reversing the direction of oil flow meant that excess oil stocks in the Cushing area could return and eventually return to the market. He pointed out that the Cushing area is the delivery point for New York's oil and gas. New York's oil price has remained low for several months and is well below London's Brent oil price. One of the reasons is that there are too many oil inventories in the Cushing area. Oil spills prevent excess inventory from flowing back.

"After reversing the direction of oil flow, oil inventories in the Cushing area will be reduced, leading investors who previously shorted New York Petroleum** to now have to buy sharply," said Carben. "This is the main reason for the sharp rise in oil prices in New York today. It is also the reason why the price gap between New York and London has narrowed."

The U.S. Energy Information Administration also announced on the same day that last week US crude oil inventories fell by 106 million barrels, basically in line with market expectations.

In terms of economic data, data released by the Federal Reserve Board showed that the U.S. industrial output rose by 0.7% in October, far better than the 0.1% drop in the previous month, and the U.S. economy showed signs of improvement. At the same time, the US consumer price index fell by 0.1% month-on-month, the first time in four months. Good economic data provided support for the rise in oil prices in New York.

However, the risk of the spread of the European debt crisis still exists, and the shortage of funds in the banking systems of Italy and Spain is revealed. Kaben said that the future of oil prices in New York and London will depend largely on the development of the European debt crisis.

At the close of the day, the price of light crude oil** delivered by the New York Mercantile Exchange in December rose by 3.22 US dollars to close at 102.59 US dollars per barrel, an increase of 3.24%. However, the London Brent crude oil price in London in December fell 30 cents to settle at 111.88 US dollars per barrel, a decrease of 0.27%, and the price gap between New York's oil prices once again narrowed to 9.29 US dollars per barrel.