Tuesday saw a little increase in oil prices due to optimistic market fundamentals, an OPEC report stating that demand is still high, and worries that supplies may be hampered as a result of US sanctions against Russian oil exports. By 0413 GMT, Brent crude futures had increased by 30 cents, or 0.36%, to $82.82 per …
Tuesday saw a little increase in oil prices due to optimistic market fundamentals, an OPEC report stating that demand is still high, and worries that supplies may be hampered as a result of US sanctions against Russian oil exports. By 0413 GMT, Brent crude futures had increased by 30 cents, or 0.36%, to $82.82 per barrel. WTI oil futures for the US increased by 28 cents, or 0.36%, to $78.54 a barrel. The Organisation of the Petroleum Exporting Countries attributed the recent decline in prices to speculators in their monthly report. Additionally, it maintained its relatively high 2024 prognosis while marginally raising its expectation for the rise in global oil consumption in 2023. Due to worries that demand may decline in the two largest oil consumers, the United States and China, oil prices fell to their lowest point since July last week. October saw a sharp decline in Chinese consumer prices to levels not seen since the COVID-19 pandemic, and exports declined more than anticipated. After selling the most oil from the stockpile ever last year, the U.S. Department of Energy intends to purchase 1.2 million barrels of oil to help refill the stockpile, which might further boost demand. A US restriction on Russian oil shipments may cause supply disruptions and raise prices. The largest move taken by Washington since a price restriction was set to limit oil payments to Moscow, the U.S. Treasury Department has sent notifications to ship management companies demanding information about 100 boats it believes to be in violation of Western sanctions on Russian oil. However, ANZ and ING analysts warn that renewed negotiations in Iraq to reopen an oil pipeline could be detrimental to the market. Resuming oil production from the Kurdish region’s oilfields and northern oil exports through the Iraq-Turkey pipeline are goals that Iraq’s oil minister hopes to achieve with the Kurdistan Regional Government and international oil corporations. Following an arbitration ruling by the International Chamber of Commerce, Turkey has stopped exporting 450,000 barrels per day (bpd) of oil from the north through the Iraq-Turkey pipeline as of March 25. Later in the day, the most recent monthly oil market data from the International Energy Agency will be a focal point for the market.
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