With a strong rise reaching 4%, oil prices are moving against the background of the increased consumption shown by the figures in the USA, while the c.g. of OPEC says risks to global demand are probably overstated.
In particular, his contract Brent for October delivery is negotiated at 97.3 dollars the rising barrel 3.9% or $3.7.
Similarly, the American WTI September also jumps 3.7% and trades in $91.35 the barrel with its price having increased by 2.95 dollars during the day.
Behind the upward trend in prices seems to be the latest figures in the US, which yesterday showed a decline that far exceeded analysts’ estimates in the country’s oil reserves, mainly due to increased gasoline consumption.
The EIA report surprised markets by showing that “crude fundamentals may not be as negative as we thought just a week ago,” notes BOK Financial’s Dennis Kissler.
“However, traders are still concerned about the overall economic outlook going forward, which is bringing strong nervousness to the futures market,” he adds.
Oil has recently been trading near more than six-month lows, having erased gains made after Russia’s invasion of Ukraine fueled fears of a global economic slowdown.
Fears have intensified recently in light of successive interest rate hikes by central banks worldwide to tame extremely high inflation, but new OPEC Secretary-General Haitham al-Ghais believes the concerns are probably overblown.
“There’s a lot of fear,” al-Ghais told Reuters earlier today. “There’s a lot of speculation and anxiety, and that’s mainly what’s driving prices down.”
“Whereas in the real economy we’re seeing very different things. Demand is still strong. And we continue to feel that demand will pick up, while we’re very optimistic about the rest of this year,” he added.
He said that OPEC wants to ensure that Russia continues to participate in the organization’s oil production agreements after 2022, despite the international sanctions that are expected to be imposed on it.
Finally, on the supply side, the issue of reviving Iran’s nuclear program continues to loom, which would put Tehran back in the game of global production, pumping large amounts of oil into the market that would significantly de-escalate price pressures.