The prices of Petroleum rose at the close of the week, at a time when the market is still analyzing geopolitical events, mainly after what happened in Russia, with the death in prison of the opposition leader Alexei Navalny.
The price of a barrel of Brent of the North Sea for delivery in April rose 0.73% to close at $83.47, while that of West Texas Intermediate (WTI) for delivery in March it gained 1.48%, remaining at $79.19.
In this way, after a very volatile session, as has been happening in recent weeks, the Brent completed an increase of around 1% in the week and the WTI did the same, with an advance close to 2.5%.
Geopolitical tensions and fear over what happened in Russia
The growing risk of wider conflict in Middle East supported oil prices during the session, while the announcement of the death in prison of the Russian opponent Navalny, detained three years ago, will be a factor to take into account.
The Russian president Vladimir Putin is responsible” for his death, said the US president Joe Biden, in agreement with several leaders, including the French Emmanuel Macron, who expressed his “anger” and “indignation.”
At the same time, the producer prices of USA rose more than expected in January amid sharp increases in utility costs, which could amplify concerns that the inflation is picking up again.
“Geopolitical tensions are causing consumer prices to begin to rise, not only in the energy complex,” he said. Tim Snyder, economist at Matador Economics.
“Geopolitical fears weigh on the market,” he observed John Kilduff, from Again Capital, along the same lines. And he added: “This will undoubtedly lead to a tightening against Russia and, perhaps, to sanctions that really penalize (the country) and limit Russian oil exports.”
Since the Russian invasion of Ukraine almost two years ago, the world market “has not lost many Russian barrels, neither of crude oil nor of refined products,” the analyst stressed.
Rejected by Europe, the United States and Canada, he russian oil has found buyers in India and above all, China.
For Kilduff, the price development on Friday was also due to the proximity of a three-day weekend in the United States (Monday is a holiday) and the desire of many traders not to be vulnerable to a sharp rise on Tuesday due to possible new geopolitical tensions.
Investors were especially concerned about comments this Friday by the leader of the pro-Iran movement Hezbollah, Hasan Nasrallah, who promised to avenge “with blood” the death of civilians in Israeli attacks.
Source: Ambito
