2023-07-05 21:40:00
Closing price: Oil prices rose on Wednesday, prompted by proactive statements from Saudi Arabia, determined to support crude oil prices even if it means losing income.The price of a barrel of Brent BRENT Brent or North Sea crude is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for setting oil prices. North Sea Oil for September delivery gained 0.52%, to close at $76.65.
As for the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.) US, expiring in August, it jumped 2.82% to $71.79.
The difference between the two variations, a rare phenomenon, can be explained by a possible “catch-up” effect of the prices of WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.whose market was closed on Tuesday, the American national holiday, unlike the Brent BRENT Brent or North Sea crude is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for setting oil prices.said Daniel Ghali of TD Securities.
“We are seeing cover buying” by speculative operators, who had positioned themselves on the downside but are changing their tune “with a tension in the fundamentals following Saudi Arabia’s decision to extend its production cuts and to that of Russia to limit its exports”.
The kingdom announced Monday that it would renew in August the reduction of one million barrels per day of its production, implemented in July. At the same time, Russia has pledged to cut its crude oil exports by 500,000 barrels per day.
On Wednesday, Saudi Energy Minister Prince Abdulaziz bin Salman insisted that the timing of these announcements was “quite telling” and demonstrated that the two main players in the OPEC+ cartel (Organization of the Petroleum Exporting Countries and their allies from the OPEC+ agreement) were aligned.
“We will continue our efforts to surprise the markets (…), we will do everything necessary” in order to stabilize prices, he stressed at the opening of an OPEC seminar in Vienna, headquarters of the organization.
The market has been wondering, in recent months, regarding the attitude of Russia, which although having undertaken, in February, to contract its production of 500,000 barrels per day, continued to water the market in black gold.
“The OPEC + alliance is stronger than ever,” reacted in a note, analysts at JPMorgan.
Traders largely ignored the incident in the Gulf of Oman on Wednesday that saw the US Navy prevent Iran’s seizure of two oil tankers, according to US Naval Forces Central Command (Navcent).
According to several media, one of the two tankers is operated by Chevron.
“Historically, operators do not see these incidents in the Strait of Hormuz causing the loss of barrels”, recalled Daniel Ghali. “As a result, it does not affect prices.”
(c) AFP
Oil is accelerating, marked by Saudi Arabia’s offensive rhetoric
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