Due to reduced supply, oil prices continue to rise
Kyiv • UNN
Oil prices continued to rise for the second week in a row due to a decline in supply, geopolitical tensions, and expectations of increased demand as the economy recovers.
For the 2nd week in a row, the price of oil continues to rise due to a reduction in supply. This is reported by UNN with reference to Reuters.
Details
On Friday, oil prices continued to rise for 2 weeks in a row, which is attributed to declining supplies and expectations of rising demand due to the improving economic situation.
Prices for Brent crude oil rose 26 cents, or 0.3%, to $90.91 per barrel at 12:52 GMT. U.S. West Texas Intermediate crude rose 6 cents, or 0.1%, to $86.65 per barrel.
On Thursday, both of these benchmarks reached their highest levels since October.
This week, Brent and WTI crude oil prices are expected to rise by more than 4% as Iran, OPEC's third-largest producer, promises a response to an Israeli attack that killed senior Iranian military officials.
The market knows that some kind of retaliation by Iran is likely, but it does not know any details, which creates great discomfort and nervousness
This week, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, the OPEC+ group, decided to keep their oil supply policy unchanged. At the same time, they called on some countries to do more to fulfill the conditions for production cuts.
According to official data released on Friday, US job growth in March was higher than expected, which also indicates a steady increase in wages. The rise in nonfarm payrolls could indicate potentially strong demand for oil, but it could also delay the expected interest rate cuts by the US Federal Reserve until later this year. This comes in the context of a steady increase in global oil demand by 1.4 million barrels per day in the first quarter, according to JPMorgan analysts in a note.
Our high-frequency demand indicators show that total oil consumption in March averaged 101.2 million barrels per day, 100,000 bpd above our published estimates
Recall
Oil prices soared above $88 per barrel, the highest since October, due to rising demand from China and the US, as well as escalating tensions in the Middle East, which are increasing supply concerns.
