The price of Brent oil rose to close to $ 130 a barrel on Monday, the highest since 2008 as the U.S. and its European allies are considering banning Russian oil imports, and a delay in Iranian oil’s possible return to global markets has fueled tight supply fears.
Brent crude oil futures jumped $ 10.88, 9.2%, to $ 128.99 a barrel at 0723 GMT, while US West Texas Intermediate (WTI) crude rose $ 9.80, 8.5% rose to $ 125.48.
In the first few minutes of Monday’s trading, both benchmarks rose to more than $ 10 a barrel since July 2008, with Brent at $ 139.13 and WTI at $ 130.50.
Peaks within Monday are close to record levels for both contracts in July 2008, when Brent reached $ 147.50 per barrel and WTI reached $ 147.27.
The U.S. and its European allies are investigating a ban on Russian oil imports, Blinken said Sunday, and the White House is moving forward with its own ban in consultation with key congressional committees.
“The scramble for additional barrels to fill Russia’s 3-4 mb / d daily export deficit will undoubtedly accelerate this week,” he told RBC Capital’s Helima Croft in a note.
“This could prove to be a serious order, as OPEC’s immediate reserve capacity is currently in Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, and we estimate that these four countries will only be able to produce capacity between 2.0 and 2.5 mb / day. in the next 30. 60 days, ”he said, adding that it remains to be seen how many countries will join the official Russian oil embargo.
World oil prices have soared by more than 60% since early 2022, along with other raw materials, raising concerns about global economic growth and stagflation. China, the world’s 2nd economy, is already aiming for slower growth of 5.5% this year.
Fuel prices exceeded 2008 records, with U.S. gasoline peaking at $ 3,890 per gallon and futures fuel at $ 4,237 a gallon.
Analysts at Bank of America say most of Russia’s oil exports will be cut by a deficit of 5 million barrels or more, meaning oil prices could double from $ 100 to $ 200 a barrel, while oilers say this week the price may decrease. soaring to $ 185 a barrel this year.
“If supply shortages do not diminish, oil could well exceed record highs,” said Howie Lee, an economist at Singapore’s OCBC bank.
“In the worst case scenario, if a full sanction is imposed on Russia’s energy exports, I wouldn’t be surprised to see Brent trading above $ 200,” he added.
Russia is the world’s largest exporter of crude oil and petroleum products, exporting about 7 million barrels a day, or 7% of global supply. Some of Kazakhstan’s oil exports from Russian ports have also faced difficulties.
Despite rising oil prices, U.S. energy companies cut the number of oil rigs in operation last week, highlighting supply concerns. The closure of the El Feel and Sharara oil fields in Libya has resulted in a loss of 330,000 barrels a day, the National Oil Corporation (NOC) said on Sunday, accounting for more than 25% of its production in 2021.
Negotiations to revive Iran’s 2015 nuclear deal with the world’s powers plunged into uncertainty on Sunday after Russia demanded that the United States guarantee that sanctions imposed on Tehran would not violate its trade with Tehran. According to sources, China has also raised new claims.
In response to Russian demands, U.S. Secretary of State Antony Blinken said on Sunday that sanctions imposed on Russia over the invasion of Ukraine had nothing to do with a possible nuclear deal with Iran.
“Iran was the only real bearish factor hanging over the market, but if the Iranian agreement is delayed now, we can reach the bottom of the tanks much faster, especially if the Russian barrels are out of circulation for a long time,” said Amrita Sen, co-founder of the company. Energy Aspects, a think tank.
Eurasia Group says new Russian demands could disrupt nuclear talks, although it still holds a 70 percent chance of an agreement.
Analysts say Iran will need several months to restore oil flows, even if it concludes a nuclear deal.
U.S. and Venezuelan officials have separately discussed the possibility of easing oil sanctions on Venezuela, but have made little progress toward an agreement in their first high-level bilateral talks in years, five sources familiar with the matter say Washington wants to separate. Russia is one of its key allies.
Brent has risen to $ 139 due to a Russian oil ban due to a delay in the Iran agreement – SABC News
Source link Brent has risen to $ 139 due to a Russian oil ban due to a delay in the Iran agreement – SABC News