Oil contracts ended the day lower, although for most of the day they continued the upward rally of the last few days with the price of crude even reaching $ 120.
In particular, the European Brent in May closed at 110.73 dollars per barrel, with its price having fallen by $ 2.2 the 1.95%but having recorded a new high of 14 years intra-conference reaching as far as 119.84 dollars.
Similarly, the American WTI in the most active April contract ended the trading with a fall 2.6% or 2.9 dollars in 107.67 dollars. the barrel, while at the high of the day has caught 116.57 dollars.
Russia’s invasion of Ukraine continues to push oil prices higher and higher, with the market now hoping to speed up the international deal with Iran over its nuclear program, which will allow Tehran to resume production, thus limiting its production. supply pressure.
According to a note from PVM to its customers, “unless there is a significant escalation of tension in Ukraine with mutual concessions from both sides, or Iran is not immediately allowed to return to the market to start selling its stocks before increasing production, the upward trend is not expected to be stopped “.
In this climate, after all, the crude contracts stopped their upward trend and turned into negative signs, when an Iranian journalist announced on twitter that an agreement is imminent within the next 72 hours.
I have received definitive news that within the next 72hours the nuclear deal will be signed in Vienna.Even if it might take a couple of days more or so, what appears to be certain is that the deal will be reached.#Iran‘s #oil is returning to the market under golden circumstances
– Reza Zandi (@R_Zandi) March 3, 2022
Despite today’s decline, however, in the whole week the brent contract is at + 14% and the WTI at + 19%.
And with production already limited before the invasion, and the fact that many countries are now avoiding trade with key Russian producers for fear of violating the sanctions imposed, traders fear a supply shortage is likely.
Source: Capital
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