Oil: ‘Dive’ over 4% per week

Oil prices closed higher on Friday, after a session of strong volatility, but on a weekly basis, US crude fell more than 4%.

“This week’s volatility is due to confusion about what to do with Russian oil exports,” said Manish Raj, chief financial officer of Velandera Energy Partners. He noted that all eyes are on the volume of Russia’s oil exports and reservations for April and May, which so far “have not found many buyers.”

“If the Russians do not find a way to circumvent the sanctions, oil prices will experience new highs,” Raj said.

“I expect more volatility. There is still a lot of uncertainty out there,” said Justin Smirk, chief economist at Westpac.

This week’s ups and downs are mainly due to shrinking supply due to sanctions on Russia, nuclear talks with Iran, declining stocks and concerns about rising coronavirus cases in China, developments that have hit demand.

Analysts at RBC Capital say the losses in Russian oil exports are likely to prove to be long-lasting and that there will be little potential for compensation.

In this climate, the West Texas Intermediate April delivery was up $ 1.72, or 1.7%, at $ 104.70 a barrel on the New York Mercantile Exchange. During the week, oil lost 4.2%, according to FactSet.

The Brent oil climbed by $ 1.29 or 1.2% on Friday, with the price reaching $ 107.93 a barrel, but in the week it recorded losses of 4.2%.

Source: Capital

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