Significant gains in oil prices on Friday, with black gold extending 7-year highs as winter storms sweep the US, boosting demand for heating oil and while supply concerns remain with investors moving away from stocks. technology in favor of less volatile goods.
“A move to $ 100 for crude should not be ruled out in the short term, but the risks of falling prices are not lacking. Among other things, the impact of the Omicron mutation on demand, economic growth concerns and market adjustments “As central banks try to tame inflation by adopting a more aggressive monetary policy,” Bjørnar Tonhaugen, an analyst at Rystad Energy, said in a statement.
At the same time, Commerzbank is revising its forecast for Brent to $ 90 a barrel in the current quarter from $ 80 and to $ 85 a barrel in the second quarter from $ 75, due to the risk of war between Russia and Ukraine.
Stronger-than-expected demand is also a key reason oil prices are projected to recover to pre-pandemic levels by mid-year at the latest.
Meanwhile, this week there was an agreement in OPEC + to increase production by 400,000 barrels per day in March, confirming analysts’ estimates.
The agreement envisions a further increase in production by 400,000 barrels per day in March, continuing at the same rate as in previous months as part of the Agency’s strategy to gradually bring back supply levels off the peak of the coronavirus crisis. , when demand had collapsed.
“The market relied on OPEC + to gradually increase volumes, but it had overestimated its ability to do so,” Manish Raj, chief financial officer of Velandera Energy Partners, told MarketWatch.
The cartel member states were unable to produce oil at the levels of the quotas assigned to them, widening the supply-demand gap, he added.
In this climate, the West Texas Intermediate March delivery was up $ 2.04, or 2.3%, on Friday, at $ 92.31 a barrel on the New York Mercantile Exchange. This was the highest level since September 29, 2014, according to FactSet. In weekthe WTI recorded gains of 6.3%.
The Brent oil April delivery rose 2.4%, or $ 2.16, to $ 93.27 a barrel, the highest level since October 2, 2014. weekBrent strengthened by 5.4%.
Source: Capital
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