International oil prices ended the trading session with mixed results on Thursday, with US crude continuing to rise due to the sharp drop in US stocks, but with Brent taking a break from its general uptrend.
The traders’ focus is on the negotiations over a return to the Iran nuclear deal, as well as those on Ukraine and its future.
The global benchmark, Brent crude for April deliveryfell 14 cents, or 0.2%, to $ 91.41.
The WTI American crude, March deliverygained 22 cents, or about 0.3%, to $ 89.88 a barrel.
“Indicators of particularly high inflation in the US in January sent the dollar higher, which generally has a negative effect on commodities,” said Edward Moya, senior market analyst at OANDA. However, the fundamentals surrounding the oil market “remain extremely strong and, without any change in them, crude prices will generally move higher”.
Earlier in the week, oil fell from a seven-year high, largely due to analysts’ focus on Iran-US return talks under the “nuclear” deal. The Trump administration had withdrawn the US from this agreement in 2018, re-imposing sanctions on Iranian crude exports. Analysts estimate that Tehran could return to the world market about 1 million barrels of crude a day, within a year of reaching an agreement.
US President Joe Biden and King Salman of Saudi Arabia also discussed energy and rising fuel prices, as well as developments in the Middle East, on Wednesday.
The communication was interpreted as pressure from Washington in Riyadh to increase its production, which is clearly below Saudi Arabia’s potential.
Earlier today, the Organization of the Petroleum Exporting Countries, in its monthly report, left unchanged its forecast for the increase in demand for crude in 2022 to 4.2 million barrels per day.
Source: Capital
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