Prices increased this Thursday, after two consecutive sessions of decline. Investors anticipate a reduction in supply.
The prices of Petroleum rose this Thursday, after two consecutive sessions of decline, because investors anticipate a reduction in supply, while the alliance of producers is expected OPEC+ maintain its current production cuts.
The price of a barrel of Brent of the North Sea, for delivery in May, rose 1.61%, to $87.48, while its US equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, it gained 2.23%, remaining at $83.17.
On Wednesday, prices of Petroleum came under pressure after the unexpected increase in crude oil and gasoline inventories in USA last week, due to an increase in crude oil imports and sluggish gasoline demand, according to data from the Energy Information Administration.
However, the increase in crude oil stocks was less than the buildup forecast by the American Petroleum Institute, and analysts noted that the increase was lower than what would be expected for this time of year. “We expect US inventories to rise less than normal, reflecting a global Petroleum slightly in deficit,” said Bjarne Schieldrop, an analyst at SEB. “This will likely support the Brent crude price going forward.”
Also supporting prices were US refinery utilization rates, which rose 0.9 percentage points last week.
Investors will be attentive to the results of next week’s meeting of the Joint Ministerial Monitoring Committee of the Organization of the Petroleum Exporting Countries (OPEC), in a context of concern about geopolitical risks. OPEC+ is unlikely to change its oil production policy until the ministerial meeting in June.
Fall in global supply
The two global references in the market Petroleum are benefiting from the problems of supply or the fears of shortage Worldwide.
“The production and export prospects of Russia have gradually deteriorated due to Ukrainian drone attacks,” he explained Tamas Varga, PVM Energy analyst. kyiv has stepped up its attacks against Russia in recent weeks, especially against energy sites.
Matt Smith, of the consulting firm Kpler, stressed that “the geopolitical context and the desire of the OPEC+ to maintain their production cuts have supported crude oil prices.
Regarding the world supply of crude oil, Varga commented that there is “strong consensus that world oil reserves will be depleted throughout the year”, given that “demand is reaching unprecedented levels” and that “OPEC+ seems to be sticking to self-imposed production limitations, at least until June.
The Organization of the Petroleum Exporting Countries and its allies in the OPEC+ alliance will hold a technical meeting of their Joint Ministerial Monitoring Committee on April 3.
Source: Ambito
