2023-06-17 10:17:24
Global oil prices recorded remarkable weekly gains, driven by news of an increase in Chinese demand for fuel, in addition to the effects of the production cuts decisions taken by the “OPEC +” alliance. The price of Brent crude increased by 94 cents at the end of Friday, to settle at $76.61 per barrel, while the price of West Texas Intermediate crude increased by $1.16, to settle at $71.78 per barrel. In the outcome of last week, Brent crude prices recorded a weekly increase of about 2.4%, while West Texas Intermediate crude prices increased by about 2.3%.
Oil prices received a strong push this week, due to the news that China increased its import quotas of crude oil, compared to the same period last year, which indicated the possibility of China boosting global demand for crude oil, despite the slowdown in Chinese economic growth this year compared to normal rates. previously expected. It is known that the trends of Chinese demand for oil represent this year a decisive factor in relation to the balances of the global market, after China began, since the beginning of the year, to lift the restrictions that were imposed on its economic sectors as part of measures to combat the Corona epidemic.
It seems that oil prices are still receiving support from the decisions to extend production cuts taken by the OPEC + alliance, in addition to the additional voluntary cuts announced by the Kingdom of Saudi Arabia. Oil prices also received an additional boost from the Federal Reserve’s recent decision to temporarily stop interest increases, in a sign of the gradual exit from the tightening monetary policies that pressure global economic growth rates.
The Russian Energy Minister, Nikolai Shulginov, announced on Friday that he believes it is “realistic” to assume that oil prices reach $80 a barrel by the end of the year. Shulginov said that Russia’s production of oil and gas condensate is expected to decrease by about 20 million tons this year, while the current production is basically 10% below the expected levels.
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