Closing price: Oil prices jumped on Wednesday, propelled by the International Energy Agency’s (IEA) upward revision of demand in the fourth quarter of 2024, and as US sanctions against Russia are still felt on the market. 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, increased by 2,64% has 82,03 dollarsat the highest since July 2024.
Its American equivalent, the barrel of West Texas Intermediate, for delivery in February, gained 3,28% and exceeded the bar 80 dollars the barrel, 80,04 dollars.
Growth in oil consumption in 2024 should be less sluggish than expected, driven by dynamic global demand in the fourth quarter, estimated the IEA, which is revising upwards its estimate for this period.
This slight correction caused black gold prices to rise, also supported by OPEC’s (Organization of the Petroleum Exporting Countries) expectations of growth in demand for 1.4 million barrels of crude oil per day in 2025.
???????? Furthermore, the market continues to follow the consequences of the new sanctions taken by Washington and London against major players in the Russian oil sector, and their consequences on “global supply“, according to John Kilduff of Again Capital.
???????? The US Treasury Department announced sanctions on Friday against more than 180 ships as well as major Russian oil companies Gazprom Neft and Surgutneftegas, thereby respecting “G7 commitment to reduce Russian energy revenues“London also sanctioned these two companies.
Daleep Singh, White House deputy national security adviser for international economics, said the sanctions were “the largest ever imposed” by the United States to the Russian energy sector.
“These sanctions will hit hard all key links in the Russian oil production and distribution chain“, he added.
“The world has changed with this new sanctions plan and (…) the stricter approach towards Russian oil exports, so this has influenced the market“, Mr. Kilduff commented to AFP.
❄️ Temperatures “which cooled significantly in December“in Canada, the United States, a large part of Europe, Russia, China and Japan, have favored greater demand for oil, also underlines the IEA.
In the United States, “another cold snap is forecast for next week“, observed Mr. Kilduff, which could push prices higher.
“A resurgence of Arctic air is forecast for next week, with dangerously cold temperatures (…) for much of the country“, according to the US National Weather Service (NWS).
(c) AFP
Commenter Oil up sharply, driven by accelerating demand
Community barrel price
