Oil demand is expected to average 99.70 million barrels per day in the fourth quarter of 2021 RIYADH: Oil prices rose to near six-week highs on Monday as US output remains slow to return two weeks after Hurricane Ida slammed into the Gulf Coast and worries another storm could affect output in Texas this week. Those gains came even though the Organization of the Petroleum Exporting Countries trimmed its world oil demand forecast for the last quarter of 2021 due to the delta coronavirus variant. Oil demand is expected to average 99.70 million barrels per day in the fourth quarter of 2021, down 110,000 bpd from last month’s forecast, OPEC said in its monthly report. OPEC said a further recovery would be delayed until next year when consumption will exceed pre-pandemic rates. Brent futures rose 53 cents, or 0.7 percent, to $73.45 a barrel by 11:30 a.m. EDT (1530 GMT), while US West Texas Intermediate crude rose 71 cents, or 1 percent, to $70.43. That puts Brent on track for its highest close since Aug. 3 and WTI on track for its highest close since July 30. In addition to the OPEC forecast, other bearish factors also held back oil price gains on Monday, including persistent worries about coronavirus on global crude demand, potential supply increases from planned releases of oil from strategic reserves in the US and China. Ads by optAd360 A city in China’s southeastern province of Fujian has closed cinemas and gyms, sealed off some entries and exits to highways and told residents not to leave town as it battles a local COVID-19 outbreak. Traders noted China’s planned release of oil from strategic reserves could boost supplies available in the world’s the second biggest oil consumer. The US government agreed to sell crude oil from the nation’s emergency reserve to eight companies including Exxon Mobil, Chevron and Valero, under a scheduled auction to raise money for the federal budget. Topics: OIL OPEC DEMAND RELATED 109Refined oil demand to drop below 2019 levels in 29 years - IHS Markit BUSINESS & ECONOMY Refined oil demand to drop below 2019 levels in 29 years - IHS Markit 78Kuwait Oil Company to invest $6.1bn in exploration BUSINESS & ECONOMY Kuwait Oil Company to invest $6.1bn in exploration Global shipping industry rakes in huge profits Global shipping industry rakes in huge profits Updated 13 September 2021 FAHAD ABULJADAYEL September 13, 2021 23:40 78 Jump in earnings has been caused due to a 333%hike in shipping cost Ads by optAd360 JEDDAH: The global shipping industry is raking in huge revenues daily at a level not seen since 2008. The sudden jump in earnings has been caused due to a 333 percent hike in shipping cost in the aftermath of the coronavirus outbreak, which disrupted the global supply chains, according to a Bloomberg report. The hike in cargo charges, however, has raised the specter of inflation around the globe. An increase in transportation cost has a cascading effect on the overall economy and the end-user is affected the most. Eighty percent of global trade takes place through the sea, which means the impact of the higher shipping cost will not be confined to one economic sector. Currently, a 40-foot container from China to Europe costs $14,287, which is up more than 500 percent from a year earlier. The impact of the shipping cost does not stay here; it affects the prices of almost everything transported through such containers. With the global economy reopening and rebounding from the pandemic, the containers sector is set for huge profits due to a rise in demand for raw materials and other items. Logistics companies are making huge profits, for example, Maersk posted an estimated $5billion in earnings last month. The spree is likely to continue for the shipping industry, as the demand for raw materials and other items is not expected to decline any time soon. Ads by optAd360