prices up sharply due to a recovery in demand

prices up sharply due to a recovery in demand
prices up sharply due to a recovery in demand

Oil prices are experiencing a significant increase after a long period of uncertainty. The oil markets have regained confidence in black gold, particularly due to forecasts of increased demand for the summer season.

This Wednesday, June 19, even the West Texas Intermediate (WTI) exceeded the symbolic bar of 80 euros. Indeed, the price of a barrel of Brent from the North Sea, the reference for Algerian oil, is lowered to 85,17 dollars. As for its American equivalent, it is displayed at 80.57 dollars per barrel.

This price increase began on Monday, continued on Tuesday before stabilizing on Wednesday. It is explained by an increase in demand during this summer season. Tamas Varga, analyst at PVM Energy, emphasizes that “ there is a growing belief that global oil stocks will soon begin to fall, which should sustainably support oil prices in the second half of the year ” due to ” summer season demand ».

Oil demand is doing well

It must be said that this increase in demand confirms OPEC+ forecasts which maintain their position on the idea that energy demand is growing and that the strategy of reducing production is effective in maintaining prices at low levels. high levels. Beyond the amalgams born after the decision taken by the Organization of the Petroleum Exporting Countries (OPEC) and its allies within OPEC+ at the beginning of June, the announcement of reductions, which relate to 2.2 million barrels per day, is, in fact, beginning to bear fruit.

Thus, the fact that the reductions decided by the members of this organization would gradually disappear from October no longer has a negative impact on the markets. This second announcement is intended to “ reassure the market “. OPEC+, by indicating that it leaves itself the possibility of not reintroducing, as planned, these millions of barrels per day from this fall, if the market is in surplus, is boosting the market, according to DNB analysts.

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