Oil on the rise, between hope of better demand and geopolitical risk

closing price of oilclosing price of oilClosing price: Oil prices climbed on Monday, driven by hopes of better demand in the United States which is banking on a drop in crude stocks during the summer and by geopolitical risks, particularly in the Middle East and with the war in Ukraine.

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 August, concluded up 0.90% has $86.01.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for delivery the same month, won 1.11% has $81.63.

We had a good session on the oil market. Investment funds are starting to realize that the market could tighten significantly in the coming weeks“, with the travel season in the United States, estimated Phil Flynn of Prices Futures Group.

Tamas Varga, analyst at PVM Energy also mentions “growing confidence“among investors”in the fact that global oil stocks will inevitably fall during the northern hemisphere summer“.

In parallel, “there has been an increase in geopolitical risks“, noted Phil Flynn.

Not only did Houthi rebels attack ships over the weekend, but there was also a Ukrainian strike in Crimea and the Russians are blaming the United States for this, further straining the situation.“, commented the Prices Futures Group analyst.

kyiv also claimed responsibility for a drone attack on several refineries in Russia on Friday.

In the Middle East, even if there is “no disruption to supply“black gold for now,”bellicose rhetoric goes a long way to supporting oil“, said Tamas Varga.

Israel’s northern front, along with Lebanon, has been the scene of escalating fire between the Israeli army and Hezbollah, a Hamas ally, raising fears of a larger-scale war.

On Sunday, the Shiite movement supported by Iran announced that it had targeted two Israeli military sites using explosive drones, seriously injuring a soldier, in response to the death of a leader of an allied Islamist group, in an Israeli strike in eastern Lebanon.

(c) AFP

Comment Oil on the rise, between hope of better demand and geopolitical risk

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