Friday, June 21, 2024

Oil prices have recorded a long streak of highs

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Oil prices have posted their longest streak of gains since mid-2022 due to increased demand and several reports that Saudi Arabia, the world’s biggest oil exporter, expects to cut production in the coming months.

Brent crude touched $87 a barrel on Friday, while U.S. West Texas Intermediate crude futures rose above $83 after settlement. Oil thus strengthened its streak of gains that extended over 7 weeks and was the longest winning streak since June last year.

International investment banks expect prices to continue to rise in the coming period. American bank “JP Morgan Chase” on Friday, crude oil prices are expected to reach $ 90 a barrel next September.

This was in line with a report by the International Energy Agency, which indicated that global demand for oil rose sharply in June and could rise further in August amid strong Chinese consumption. The monthly report released by the Organization of the Petroleum Exporting Countries “OPEC” last Thursday predicted that markets will see a severe shortfall in supply of more than two million barrels per day in the current period.

JP Morgan Bank analyst Natasha Kaneva was quoted by Bloomberg news agency as saying: “We believe that prices will continue to rise until a barrel reaches the level of $ 90. Key market indicators point to a rapid shortage in direct supply. Physical trading markets.”

The problem of undersupply is shifting to markets for fuel products. Gasoline and diesel oil prices in the United States rose above their natural levels during this period, and production at refineries was reduced due to shutdowns and maintenance operations.

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Bloomberg points to signs of a deal between the U.S. and Iran, which recently moved 4 U.S. citizens from prison to house arrest, in a move analysts see as aimed at curbing oil prices. The agreement will lead to an increase in oil supply to the market by OPEC member countries, the US agency said. However, US national security spokesman John Kirby said on Friday that the two countries had not held direct talks over Iran’s nuclear program.

And last Wednesday, Iran’s Tasnim agency quoted National Iranian Oil Company CEO Mohsen Khajeste Mehr as saying Iran would increase oil production by about 250,000 barrels per day to reach 3.5 million barrels by the end of next September. In the opposite direction of the coalition’s efforts OPEC +” to raise prices globally to cut supply.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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