Friday, July 12, 2024

Oil prices rise after OPEC report on crude oil market strength Economy

Date:

Oil prices rose – today Tuesday – after a report from the Organization of the Petroleum Exporting Countries (OPEC) said market fundamentals remained strong, supported by fears of a potential supply disruption as the US tightens the ropes on Russian oil exports.

Brent crude futures were up 0.4% at $82.85 a barrel by 01:13 GMT, and US West Texas Intermediate crude futures were up 0.4% at $78.59 a barrel, before the two major crudes pared their gains.

In its monthly report, OPEC blamed speculators for the recent price drop. It slightly raised its forecast for global oil demand growth for 2023 and stuck to a relatively high forecast for 2024.

Last week, oil prices fell to their lowest level since last July. It was hit by fears of falling demand in the world’s biggest oil consumers, the US and China.

China’s consumer price index fell last October to levels not seen in the country since the Covid-19 pandemic, while exports for the month shrank more than expected.

“The recent decline in morale has led OPEC to confirm its view that consumption is good,” ANZ Research analysts said in a note on Tuesday.

The note added that negotiations to restart an oil pipeline in Iraq could be a headwind for the market.

Iraqi Oil Minister Hayan Abdul Ghani hopes to reach an agreement with the Kurdistan Regional Government and foreign oil companies to resume production from oil fields in the region and resume exports from northern fields via the Iraq-Turkey pipeline.

Turkey has suspended 450,000 barrels per day of northern exports through the pipeline since March 25 after a ruling by the Chamber of Commerce.
International trade.

See also  New corona strain lowers oil prices

Oil prices received support from the US crackdown on Russian oil exports, which could lead to supply disruptions.

The US Treasury Department issued notices to shipping companies seeking information on 100 ships suspected of violating Western sanctions on Russian oil, Washington’s biggest move since imposing price ceilings to reduce Moscow’s oil revenues.

Additionally, the U.S. Energy Department plans to buy 1.2 million barrels of oil to help replenish strategic reserves after selling the largest inventory last year.

OPEC Secretary General Haitham Al-Qais said global energy demand is expected to rise 23% through 2045, and that the global oil industry needs to invest $12.1 trillion over the same period, but is not on track to reach this level of investment. .

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

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