LONDON (Archyde.com) – Oil prices rose on Thursday, close to $120 a barrel, their highest level in nearly a decade, as sanctions hampered Russian oil sales, but the rally lost some of its momentum as prospects for an Iranian nuclear deal rose. Which may add supply to the market.
Brent crude prices rose to $119.84 a barrel, the highest level since 2012, and their prices received support from data that showed that US crude stocks reached their lowest level in years. But by 14:16 GMT, Brent crude had fallen to $112.75 a barrel. Brent has jumped by more than a third over the past month.
West Texas Intermediate crude rose to $116.57 a barrel, the highest level since 2008, before falling back to $109.66 a barrel.
Prices reversed course in early US trade following an Iranian reporter said on Twitter that a breakthrough had been made in talks aimed at reviving the Iran nuclear deal, which might mean the Islamic Republic’s oil might return to the market.
The head of the International Atomic Energy Agency is scheduled to visit Iran on Saturday, raising the prospects of an agreement.
Oil’s gains came earlier on Thursday following the latest round of US sanctions on Russia’s refining sector, raising fears that Russian oil and gas exports might be next targeted.
The OPEC Plus bloc, which includes member states of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, decided to increase production to the amount agreed upon in the production agreement, which is 400,000 barrels per day in March, despite the increase in prices and consumers’ demands for more crude.
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OPEC Plus
“OPEC Plus” raises production by 400,000 barrels in April
written by Alexandra Hartman Editor-in-Chief
LONDON (Archyde.com) – OPEC Plus sources said today, Wednesday, that the oil producers’ bloc agreed to abide by plans to increase production by 400,000 barrels in April, despite a sharp jump in prices amid sanctions once morest Russia over its military attack on Ukraine. Oil topped $110 this week, its highest level in nearly eight years, as Western sanctions tightened the noose further on Moscow, disrupting supplies from Russia, the world’s second-largest oil exporter. The measures taken by the West have also caused problems with exports from Kazakhstan, which is also a member of “OPEC Plus”, which is made up of the Organization of the Petroleum Exporting Countries (OPEC), Russia and allied oil-producing countries. And “OPEC Plus” has increased production by 400,000 barrels every month since last August, in the context of reversing the production cuts they had decided due to the decrease in demand for oil due to the Covid-19 pandemic. Four sources in “OPEC Plus” said that the ministers in the bloc agreed to abide by the existing production plans during an online meeting that lasted less than a quarter of an hour. This also came following a recommendation not to change the existing plans at the meeting of the Joint Ministerial Monitoring Committee. “The participants rejected the geopolitical tension as an influencing factor in the meeting,” a source said earlier, in reference to the preparatory talks that took place earlier, and affirmed their commitment to the basic factors. Russia described its actions in Ukraine as a “special operation” and said it had no intention of occupying it. The United States has repeatedly called for an increase in the bloc’s production. Yet very few countries have the additional capacity to increase production. The remaining effective cuts to OPEC Plus production due to the pandemic are 2.6 million barrels per day, and the bloc is expected to recover it by the end of next September. With demand recovering strongly due to the decline in the impact of the pandemic, oil prices jumped to sharp levels.
LONDON (Archyde.com) – Oil prices jumped to their highest level since 2014 on Tuesday as tensions escalated between Russia and Ukraine following Russia ordered its forces to deploy in two breakaway regions in eastern Ukraine, raising concerns regarding oil supplies and pushing its price close to $100 a barrel.
The United States and its Western allies are set to announce new sanctions once morest Russia following President Vladimir Putin formally recognized the independence of two separatist regions in eastern Ukraine, escalating a security crisis on the continent.
Brent crude futures rose $3.48, or 3.7 percent, to $98.87 a barrel, and contracts rose earlier on Tuesday to $97.66, the highest level since September 2014.
US West Texas Intermediate crude contracts jumped $4.41, or 4.8 percent, to $95.48 a barrel, following hitting $96 earlier in the day, its highest since 2014.
The Ukraine crisis has increased support for the oil market, which has already risen due to a lack of supply as demand rebounded following the Covid-19 pandemic.
Today, Tuesday, the Nigerian Minister of Petroleum adhered to the position of OPEC Plus, saying that there was no need to increase production to a greater degree now, pointing to the possibility of Iranian oil being pumped into the markets if an agreement was reached.
Talks are underway to revive a nuclear deal between Iran and world powers that might eventually increase Iran’s oil exports by regarding 1 million barrels per day.
Sources: “OPEC +” commits to increasing production scheduled for February
written by Alexandra Hartman Editor-in-Chief
London, Moscow (Archyde.com)
Three sources in the Organization of the Petroleum Exporting Countries told Archyde.com on Monday that the meeting of the “OPEC +” group today, Tuesday, is expected to confirm commitment to its plans to increase production in February, in light of its expectation that the “Omicron” variant of the Corona virus will have an impact. Slight and short term on demand. The “OPEC +” group, consisting of members of the Organization of the Petroleum Exporting Countries and its allies led by Russia, is gradually reducing the record production cuts agreed upon in 2020 to counter the collapse in demand due to the “pandemic.” In line with current plans, the group is working to increase the production target for February by 400,000 barrels per day, as it has done on a monthly basis since mid-2021. In a technical report seen by “Archyde.com” on Sunday, the group downplayed the impact of the mutant “Omicron” on the market. oil.
The report of the joint technical committee of the “OPEC +” group said: “The impact of the new omicron is expected to be mild and short-term, with the improvement of the global ability to address Covid-19 and the challenges associated with it.”
“This is in addition to the strong economic outlook in both advanced and emerging economies,” he added.
While the group sought to raise the ceiling of its goals, production did not increase at the same pace, as some members faced difficulties in raising the level of their production capabilities.
The International Energy Agency said last month that the OPEC + producing countries failed to achieve their production targets by 650,000 barrels per day in November and 730,000 barrels per day in October. According to the commission’s report’s basic hypothetical chart, OECD countries’ commercial oil stocks in 2022 will remain below the 2015-2019 average in the first three quarters before rising 24 million barrels above that average in the fourth quarter.
In addition, oil fell below $ 78 a barrel on Monday, with the “OPEC +” group apparently preparing to agree to another increase in oil production, and concern continued over the impact of the escalation of Corona virus infections on demand, despite hopes for an additional recovery during 2022.
The mutated “Omicron” strain of the Corona virus has caused record numbers of infections and reduced New Year’s celebrations around the world. More than 4,000 flights were canceled on Sunday. Brent crude, the global benchmark, fell 42 cents, or 0.5%, to $77.36 a barrel by 1402 GMT, following rising earlier to $79.05. US West Texas Intermediate crude futures also fell 52 cents, or 0.7 percent, to $ 74.69 a barrel. Oil gained some support earlier in the session due to production cuts in Libya. On Saturday, Libya’s state oil company said the country’s oil production would drop by 200,000 barrels per day for a week due to maintenance of a major pipeline between the Samah and Dahra fields.
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