MUMBAI (Archyde.com) – Crude oil prices are likely to surpass $100 a barrel due to strong global demand, analysts said this week, citing a possible war between Russia and Ukraine as one of their main concerns for markets in 2022.
Three analysts told the Archyde.com Global Markets Forum that oil prices will rise if global supplies are disrupted, as well as with the recovery in demand due to the escalation of natural gas prices in Europe and Asia, as well as the resumption of activities following the closures imposed to limit the spread of the Covid-19 pandemic.
“The biggest geopolitical risk is Ukraine. The trend is looking good overall for commodities,” said John Vail, chief global strategist at Nikko Asset Management in Tokyo.
Today, Brent crude rose $1.32, or 1.5 percent, to $92.43 a barrel by 11:20 GMT, following earlier touching its highest level since the first of 2014, recording $92.66.
West Texas Intermediate crude rose $1.45, or 1.6 percent, to $91.72 a barrel, following it also rose to a seven-year high of $91.91.
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Oil prices rose on Monday, approaching more than seven-year highs hit in the previous session, as political turmoil in Eastern Europe and the Middle East raised concerns regarding a supply shortage.
Brent crude, the benchmark, rose 92 cents, or 1.0%, to $90.95 a barrel during trading, following increasing 69 cents on Friday.
US West Texas Intermediate crude rose 99 cents, or 1.1%, to $87.81 a barrel, following rising 21 cents on Friday.
On Friday, the two benchmarks hit their highest level since October 2014.
The major producers in the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia in what is known as (OPEC +), are seeking to raise their production levels.
Tensions between Russia and the West have pushed up oil prices. The row between Russia, the world’s second-largest oil producer, and the West over Ukraine has raised fears of a possible energy shortage in Europe.
(Archyde.com)
Oil prices rose on Friday, set for a sixth straight week of gains, as geopolitical tensions continued to fuel supply concerns. Brent crude futures rose 63 cents, or 0.7 percent, to $89.97 a barrel by 1013 GMT, following reaching $91.04 in London on Thursday, the highest level since October 2014.
West Texas Intermediate crude futures rose 49 cents, or 0.6 percent, to $87.10 a barrel. US crude also reached a seven-year high of $88.54 earlier in the session.
The two are on track to record their longest streak of weekly gains since October.
Oil prices continue to receive support from fears that the Ukrainian crisis will cause turmoil in energy markets. But Russian Foreign Minister Sergei Lavrov said on Friday that Moscow did not want war with Ukraine.
Russia, the world’s second-largest oil producer, is at loggerheads with the West over Ukraine, raising fears that energy supplies to Europe might be disrupted, although the concerns center on gas supplies rather than crude.
“The market is very volatile with news of the development of the situation between Russia and Ukraine,” said Phil Flynn, senior analyst at Price Futures Group. There is uncertainty regarding what will happen.”
But prices were also hit following the US Federal Reserve said on Wednesday it was likely to raise interest rates in March and planned to end bond purchases in the same month to curb inflation.
The dollar rose following the announcement, making oil more expensive for buyers holding other currencies. On Thursday, the dollar index rose to its highest level since July 2021. (Archyde.com)
Brent crude reached its highest level in seven years, exceeding $90 a barrel
written by Alexandra Hartman Editor-in-Chief
landed oil prices Yesterday, Thursday, following Brent crude recorded its highest level in seven years, exceeding $ 90 a barrel, with a balance in the market between fears regarding a global supply shortage and expectations of the US Federal Reserve to tighten monetary policy soon.
Brent crude, the benchmark, fell 15 cents to $89.81 a barrel, while US crude fell 20 cents to $87.15 a barrel in a volatile session, and the two contracts fluctuated between ups and downs.
وارتفعت oil prices On Wednesday, Brent crude rose above $90 a barrel for the first time in seven years, amid tension between Russia and the West.
The market anxiety also increased due to the threats of the Houthi movement in Yemen to the UAE.
Russia, the world’s second-largest oil producer, is at odds with the West over Ukraine, raising fears of a disruption to energy supplies to Europe, although concerns focus more on gas supplies than crude.
Read also / Oil prices breach $90 a barrel, the highest level in 7 years
Russia said on Thursday that Washington was clearly unwilling to address its main security concerns in the standoff over Ukraine, but kept the door open for dialogue.
The US Federal Reserve said yesterday that it will likely raise interest rates in March and plans to end its bond purchases that month to curb inflation.
The dollar rose following that announcement, making oil more expensive for buyers who use other currencies.
And the market began to pay attention to the February 2 meeting of the OPEC + group, which includes the Organization of the Petroleum Exporting Countries (OPEC), along with other producers, including Russia.
The group is likely to stick to its plans to increase the target level of oil production in March, according to several sources from OPEC + told Archyde.com.
OPEC+ has been raising its production target level every month since August by 400,000 bpd, gradually abandoning a record production cut in 2020.
However, the group faced challenges represented in the available production capacity, which prevented some members from increasing production according to their quotas.