Last week, oil prices registered their greatest weekly gain since the beginning of January. The price of Brent oil, therefore, almost compensated the losses since the beginning of March. The current climbing in the Middle East provided a tail wind, since this justifies a certain risk premium on the price of oil, reports Carsten Fritsch, a commerzbank raw material analyst.
The perspective of a greater oil supply of Opec+ limits the bullish potential for oil prices
“El Alto el Fuego between Israel and Hamas in the Gaza Strip seems to be on the verge of collapse and the high fire between Israel and Hezbollah in Lebanon also runs the risk of being put to the test after reciprocal attacks with rockets. The recent US attacks to the positions of the hutí rebels in Yemen could also attract to the conflict again to the conflict in the middle The hutis as a proxy in the fight against Israel.
“The president of the US, Trump, also indicated yesterday that the countries that buy oil and gas from Venezuela will be subject to a 25% tariff, especially the US trade with the US from April 2. Petroleum prices rose further as a result. This is the most serious penalty threat that Trump has made on the oil market to date. Venezuela recently produced between 900 thousand and less than 900 thousand and less than 900 thousand and less than 900 thousand and less than 900 thousand and less than 900 thousand and less Million barrels per day, depending on the data source, which means that Venezuela’s oil production has doubled since the late 2020. The last time it was higher was six years ago. “
“However, the perspective of a greater oil supply in Opec+ will probably limit the bullish potential for oil prices. In addition, Reuters reported yesterday, citing four informed sources, which Opec+ also intends to maintain the expansion of planned oil production for May. It is said that production cuts in some countries to compensate for excessive previous production also provide margin for this.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
