A report issued by… Citigroup American banking warns of the possibility of global oil prices rising to $90 per barrel due to the continued Israeli aggression against… Gaza strip The escalation of geopolitical tensions in the Middle East, specifically in… The Red Sea Through which hundreds of ships pass, including those carrying oil.
Bloomberg News Agency indicated that oil futures prices rose yesterday to their highest levels in about a month, after the US Energy Information Administration announced a decline in oil stocks more than expected and China announced plans to stimulate the economy.
By 06:80 London time today, the price of Brent crude, the global oil standard, rose by 0.5% to $80.43 per barrel for next March delivery, while the price of West Texas Intermediate crude, which is the standard US oil, rose by 0.6% to $75.52 per barrel for March delivery. /March
US Energy Information Administration data – issued on Wednesday – showed a decline in US crude oil stocks during the week ending January 19 by 9.233 million barrels compared to the previous week, while the strategic oil reserve fell by 920 thousand barrels to 356.5 million.
At the same time, inventory in the main Cushing warehouses in the US state of Oklahoma fell by 2.01 million barrels to 30.1 million barrels.
The Chinese central bank’s announcement to reduce the reserve requirements ratio of banks raised hopes for further stimulus and economic recovery measures. In a move that would pump about $140 billion of cash into the banking system and send a strong signal to support the faltering economy and declining stock markets.
China also said on Wednesday that it was working to expand banks' use of commercial real estate lending, in its latest efforts to ease the liquidity crisis facing troubled real estate companies.
Tension in the Middle East
Meanwhile, the focus remains on geopolitical tensions in the Middle East.
“The significant decline in US oil inventories, expectations of economic recovery and more stimulus measures in China have supported oil prices,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
Fujitomi added that tensions in the Middle East also supported the purchase.
Data from Vortexa, a consulting company, indicated that tanker movement across… Bab al-Mandab Strait -The period from January 13 to 17 – decreased by 58% compared to the same period in 2023.
and communicate Houthi group Yemeni attacks targeted Israeli ships or those carrying goods for Israel, in addition to attacking United States ships after they launched strikes with Britain against the group’s sites in Yemen.