The geopolitical tension in the Middle East and the Ukrainian bombings of Russian refineries influenced the increase in its value.
The prices of Petroleum rose this Monday, driven by the prospects of strong demand and while tensions in middle East and drone attacks on Russian refineries raised fears about supply.
Crude oil futures Brent gained 77 cents, or 0.9%, to $86.01 a barrel, while those in the West Texas Intermediate (WTI) in the United States they added 99 cents, or 1.1%, to $81.63. Both benchmarks advanced close to 3% last week, adding their second consecutive weekly rise.
“The main reason underlying price strength is growing confidence that global oil inventories will inevitably fall during the northern hemisphere summer,” he said. Tamas Vargafrom the PVM brokerage, in reference to the seasonal demand for petroleum products.
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
