Oil prices rose today, Tuesday, after a report by the Organization of the Petroleum Exporting Countries (OPEC) said that market fundamentals remain strong, supported by concerns about possible supply disruptions as the United States tightens the noose on Russian oil exports.
Brent crude futures rose by the equivalent of 0.4% to $82.85 per barrel by 01:13 GMT, and US West Texas Intermediate crude futures also increased 0.4% to $78.59 per barrel, before the two main crude oils reduced their gains slightly.
In its monthly report, OPEC blamed speculators for the latest drop in prices. It also slightly raised its forecast for global oil demand growth for 2023 and stuck to its relatively high forecast for 2024.
During the past week, oil prices fell to their lowest level since last July, affected by fears of a possible decline in demand in the United States and China, the world’s largest oil consumers.
China’s consumer price index fell last October to levels not seen in the country since the Covid-19 pandemic, while exports for that month contracted more than expected.
“The recent decline in morale has led OPEC to confirm its view that consumption is good,” ANZ Research analysts said in a note on Tuesday.
The note added that renewed talks in Iraq to restart an oil pipeline could be a headwind for the market.
Iraqi Oil Minister Hayan Abdul Ghani expects to reach an agreement with the Kurdistan Regional Government and foreign oil companies to resume production from the oil fields in the region and to resume exports from the northern fields via the Iraqi-Turkish pipeline.
Turkey has stopped flows amounting to 450,000 barrels per day of northern exports through the pipeline since March 25, after a ruling issued by the Chamber of Commerce.
International Trade.
Oil prices also received support from the US crackdown on Russian oil exports, which could lead to supply disruption.
The US Treasury Department sent notices to ship management companies requesting information on 100 ships suspected of violating Western sanctions on Russian oil, which is the largest step Washington has taken since imposing a price ceiling to reduce Moscow’s oil revenues.
In addition, the US Department of Energy plans to purchase 1.2 million barrels of oil to help replenish the strategic reserve after selling the largest amount ever of inventories last year.
He was Secretary General of OPEC Haitham Al-Ghais expectation High global demand for energy 23% until 2045. He said that the global oil sector needs to invest $12.1 trillion during the same period, but it is not on its way to reaching this level of investment.
