Closing price: Oil prices gained speed on Tuesday, driven by fears over supplies from Russia and Iran and the relative lull in the dollar. The price of a barrel of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. from the North Sea, for delivery in March, won 0,98% has 77,05 dollars.
Its American equivalent, the barrel of West Texas Intermediate, for delivery in February, was granted 0,94% has 74,25 dollars.
Upward signal for crude prices,”Saudi Arabia raised its official sales prices to Asia more than expected yesterday“(Monday) for the month of February,”which could serve as an indication of a weaker offer from Russia and Iran“, noted DNB analysts.
Before Donald Trump’s inauguration on January 20, “the possible introduction of new US sanctions against Russia“on its oil sector by the Joe Biden administration is helping to support black gold prices, noted Tamas Varga, analyst at PVM Energy.
The greenbackhas weakened recently, which has undoubtedly contributed to the rise in oil prices“, commented to AFP Stephen Schork, the Schork Group.
Tuesday afternoon, thebuck“, another nickname for the American currency, regained a little ground compared to the day before, but remained far from its peaks reached a few days earlier.
As oil is exchanged in dollars, a depreciation of the greenback benefits purchases of crude, denominated in this currency.
In addition, the market is studying “the likelihood of a further extension of OPEC+ production quotas (the Organization of the Petroleum Exporting Countries and its allies, Editor’s note)“, selon M. Schork.
Eight OPEC+ members, including Saudi Arabia and Russia, plan to gradually return to production cuts of 2.2 million barrels granted since last year.
The reintroduction of this volume is currently expected from April, up to 120,000 barrels per day added each month for eighteen months.
However, fears of an imbalance between supply and demand continue to contain prices, according to Mr. Schork.
The International Energy Agency (IEA) predicts “an excess supply of 950,000 barrels per day“in 2025, which could increase if OPEC+”does not renew its voluntary cuts beyond the month of March“.
Furthermore, the market is still weighing whether the Chinese government’s new stimulus measures are sufficient to revive the world’s second-largest economy, which is facing a persistent real estate crisis and sluggish domestic consumption levels.
(c) AFP
Commenter Oil rises, amid supply uncertainties and dollar decline
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