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Oil rises in expectation of an increase in demand due to the boreal holidays

Oil rises in expectation of an increase in demand due to the boreal holidays
Oil rises in expectation of an increase in demand due to the boreal holidays

Meanwhile, the geopolitical tension in the Middle East and the Ukrainian bombings of Russian refineries also influenced the increase in its value.

Photo: Freepik

The prices of Petroleum rose slightly on Monday as traders weighed support from expected summer demand and geopolitical tensions in middle East and in the war between Russia and Ukraine, against a stronger dollar.

By midmorning, Brent crude futures were up 22 cents, or 0.3%, at $85.46 a barrel, and West Texas Intermediate futures were up 22 cents, or 0.3%, at $85.46 a barrel. USA They improved 19 cents, or 0.2%, to $80.92. Both benchmarks advanced close to 3% last week, adding their second consecutive weekly increase.

“The main reason underlying the price strength is the growing confidence that global oil inventories will inevitably fall during the summer in the northern hemisphere,” said Tamas Varga of brokerage PVM, referring to seasonal demand for products. petroleum.

The geopolitical risks in middle East and the resurgence of Ukrainian drone attacks against Russian refineries are also supporting oil prices.

The countries of the European Union agreed on Monday on a new package of sanctions against Russia for his war in Ukraine, which includes the prohibition of recharging liquefied natural gas (LNG) Russian in the block for subsequent shipment to third countries.

However, the strengthening of the dollar has made commodities priced in the greenback less attractive to holders of other currencies.

“The dollar appears to have broken higher following Friday’s better US PMI data and political concerns ahead of the French elections,” he said. Tony Sycamorethe IG analyst.

In Ecuador, the state oil company Petroecuador declared force majeure on deliveries of Napo heavy crude oil for export following the closure of a key pipeline and oil wells due to heavy rain, sources said on Friday.

Source: Ambito

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