Monday, June 24, 2024

Oil rises 3.5% in one week… Brent closes above $98 a barrel


has decreased Oil price About 2% in Friday trade, due to expectations that Gulf of Mexico supply disruptions in the U.S. will be short-lived, as recession fears cast a shadow over demand expectations. However, records rose Oil price According to the Al-Arabiya Channel website, weekly gains are in the 3.5% range.

Brent crude futures were down $1.45, or 1.5 percent, at $98.15 a barrel in settlement, while West Texas Intermediate crude futures were down $2.25, or 2.4 percent, at $92.09 a barrel, according to Reuters.

“We’re pulling back a bit after yesterday’s big rally,” Price Futures Group analyst Bill Flynn said.

Brent crude rose 3.4% this week after falling 14% last week amid concerns that higher inflation and interest rates will hurt economic growth and fuel demand. West Texas Intermediate crude rose 3.7%.

A Louisiana port official said crews are expected to replace the damaged section of the pipe by the end of Friday, allowing production to resume at seven U.S. offshore oil platforms in the Gulf of Mexico.

On Thursday, Shell, the biggest oil producer in the Gulf of Mexico, said it had halted production at three deepwater platforms in the region.

The three platforms together produce up to 410,000 barrels of oil per day.

The market also absorbed the discrepancy in demand forecasts between OPEC and the International Energy Agency.

“We are seeing an economic slowdown, but it is not clear whether it is a significant slowdown as some recent forecasts suggest,” said Ole Hansen, director of commodity strategy at Saxo Bank.

“Demand moves like waves, but supply is the main concern,” he said.

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European sanctions on Russian oil are due to be tightened later this year, while a coordinated six-month plan for the US and other advanced economies to buy back their energy stocks expires by the end of the year.

OPEC cut its forecast for global oil demand growth in 2022 by 260,000 barrels per day. It now expects demand to increase by 3.1 million barrels per day this year.

This contrasts with the outlook of the International Energy Agency, which raised its forecast for demand growth to 2.1 million barrels per day due to a switch to oil for power generation as a result of rising international gas prices.

AAlso Read | Oil prices are headed for weekly gains of more than 4%.

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

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