Meanwhile, the US barrel, the West Texas Intermediate (WTI) it fell $2.15 (2.7% daily) to $76.34, marking a weekly decline of 4.2% from last Friday.
It’s about the sixth consecutive daily drop of crude that of this Friday and, thus, accumulated a decline of 4.2% in the week.
The background of the rise in oil
It should be remembered that this Thursday, two authorities from the fed They warned on Thursday that higher borrowing costs are essential to curb inflation in the northern country and that sent the US dollar higher, making oil more expensive for buyers using other currencies.
“Rate hike jitters are back in force,” said Stephen Brennock of oil broker PVM. And on the other hand, various signs of abundant supply also weighed on the market as the latest snapshot of US supplies, released on Wednesday, showed that crude oil inventories in the week to February 10 rose. 16.3 million barrels to 471.4 million, its highest level since June 2021.
The International Energy Agency and the Organization of the Petroleum Exporting Countries this week raised their forecasts for global oil demand growth for this year, citing expectations of stronger Chinese demand, which offered some support to prices.
In addition, Saudi Arabia’s energy minister said that the current OPEC+ deal, which groups OPEC producers with Russia and others, to cut oil production targets by 2 million barrels per day, will remain until the end of the year. of year.
Annual forecasts for oil
Russian oil producers said on Friday that plan to maintain current crude export volumes, despite Russian government plan to cut production of hydrocarbons in March, the Vedomosti newspaper said on Friday, citing sources familiar with the companies’ plans.
According to JP Morgan, Brent prices are unlikely to exceed $100 a barrel this year, unless there are “significant geopolitical factors”.
JPMorgan analysts noted that since sRussian production is expected to fully recover in June and that the levels of higher prices prevent the United States from buying again to increase its strategic oil reservesthe balance between supply and demand is likely to tighten further.
As a counterpart, according to analysts, China would import a record amount of crude oil in 2023 due to rising fuel demand as people travel more after COVID-19 controls are lifted and as a result of the start-up of new refineries.
Source: Ambito
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