WTI oil falls 2.08 dollar after the market to relieve the Middle East: InfoQuest.

Crude Oil Prices Fall as Peace in the Middle East Eases Concerns

WTI crude oil prices plummeted on Friday, February 21, closing the week on a negative note. This decline comes after investors shed concerns regarding the middle East tensions and uncertainty surrounding a potential peace agreement in Ukraine.

WTI and Brent Crude Contract Slump

The April delivery contract for WTI crude oil fell by 2.08 dollars, or 2.87%, closing at $70.40 per barrel. Similarly, the April delivery contract for Brent crude oil declined by 2.05 dollars, or 2.68%, ending at $74.43 per barrel. This week,the WTI contract saw a decrease of 0.5%, while the Brent contract fell by 0.4%.

Factors Driving the Oil Price Drop

John Killduff of Again Capital in New York attributed the drop to easing Middle east tensions following the ceasefire in Gaza, which reduced market risk concerns. He added, “Peace in the Middle East After stopping the shot in the Gaza, reducing concerns about the risk in the market.”

Moreover, reports about the Wuhan Institute of Virology in China discovering a new coronavirus in bats caused an immediate drop of approximately $2 per barrel.

US Inventory and Drilling Activity

Investors continued to analyze increased data on US crude oil stockpiles, released on Thursday. The US Energy Details Office (EIA) reported that refinery maintenance during the season is leading to decreased oil distillation. However, Baker Hughes, a US energy service company, reported that the number of oil and gas drilling rigs in the US increased for the fourth consecutive week, reaching the highest level since June. The figure totaled 592 platforms on February 21, indicating potential future production increases.

Global Geopolitical Risks

Despite the positive trends, the market remains watchful for developments in oil exports. Russia announced that oil exports through the Caspian Pipeline Consortium (CPC) were reduced by 30-40% on Tuesday following a Ukrainian drone attack on a pumping station. However, oil exports from the Tengiz source of CPC are continuing as usual, according to _Interfax_ reports referencing information from Tengizchevroil.

Industry sources revealed on Thursday that Kazakhstan, the top producer of CPC crude oil, is facing challenges in boosting production despite the damaged export route.

The Ukraine Conflict and its Impact

Simultaneously occurring, the escalating conflict in Ukraine continues to cast a shadow on the market. Alex Hades, an analyst from Stonex, noted, “The market still captures the situation in Ukraine. By attacking with Ukrainian drones to support the oil price this week.”

Analysts predict that the OPEC Plus group may onc again reduce production capacity if oil prices remain below $80 per barrel.

Political Tensions Between Ukraine, Russia, and the US

The relationship between Ukrainian President Volodymyr Zelenskyy and US President Donald Trump deteriorated this week after Zelenskyy criticized the United States and russia for negotiating a peace agreement without Ukraine’s participation. The situation intensified when Trump blamed Ukraine for initiating the war three years ago.

Tho, following a meeting with Trump’s special envoy on Thursday, zelenskyy stated Ukraine’s readiness to quickly invest in and stabilize relations with the United States. John Killduff from Again Capital expressed concern that Trump’s stance could lead to the lifting of sanctions on Russia, potentially flooding the market with more Russian oil.

Given the decreasing global oil prices, what specific measures can OPEC Plus take to stabilize or perhaps increase oil prices?

Expert insights: Crude Oil Prices Plummet Amidst Global Geopolitical Shifts

Archyde News Editor:

thank you for joining us today, Dr. amina Al-Kaysi, Chief Energy Analyst at PetroStrat. Let’s dive right in. WTI and Brent crude oil prices took a notable dip this week. What are your thoughts on this growth?

Dr.Amina al-Kaysi:

Thank you for having me.Indeed, the crude oil market has seen a notable downturn this week. The primary drivers behind this are the easing of Middle East tensions following the Gaza ceasefire and reports about a new coronavirus strain in China.Additionally, increased US drilling activity and refinery maintenance have contributed to the price decrease.

Archyde News Editor:

Can you elaborate on how the Middle East situation has influenced oil prices?

Dr. Amina Al-Kaysi:

Certainly. The Middle East is a critical region for global oil supplies, and any tension or uncertainty in the area can drive prices up due to perceived supply risks. The recent ceasefire in Gaza has alleviated some of these concerns, leading to a decrease in prices. Though, its essential to remember that the geopolitical landscape in the Middle East remains complex and volatile.

Archyde News Editor:

The Ukraine conflict also seems to be playing a role in oil price fluctuations. How do you see this situation evolving, and what impact might it have on the oil market?

Dr. Amina Al-kaysi:

The Ukraine conflict is indeed a wildcard in the oil market. The situation is fluid,and any escalation or de-escalation can influence prices. Additionally,the political tensions between Ukraine,Russia,and the US are worth monitoring,as they could potentially impact oil sanctions and exports. However, it’s crucial to note that the OPEC Plus group is keeping a close eye on the situation and may adjust production capacity if prices remain below $80 per barrel.

Archyde News Editor:

dr. Al-Kaysi, what are your predictions for the crude oil market in the coming months, and what factors do you think will have the most significant influence on prices?

Dr. Amina Al-Kaysi:

In the coming months, I anticipate that global geopolitical risks, US inventory data, and OPEC Plus production decisions will continue to shape crude oil prices.Additionally, the progress of the COVID-19 pandemic and its impact on global demand will be a crucial factor to watch. As always,the oil market is interconnected with various global developments,and it’s essential to stay informed about these dynamics to make well-informed predictions.

Archyde News Editor:

Thank you, dr. Al-Kaysi, for sharing your insights. your expertise has certainly provided our readers with valuable context on the recent crude oil price fluctuations.