The Russo-Ukrainian conflict has serious economic consequences for the whole world, especially Europe. Since the beginning of the conflict, oil prices have experienced an upward price trend with records recorded for the first time since 2008.
Today, black gold prices saw a slight increase after a bearish trend for the past 15 days. The price of the barrel exceeds 100 dollars for this Tuesday, April 5.
The price of a barrel of oil saw a slight increase today, Brent futures rose 1.02% to $108.63 a barrel.
As for US crude West Texas Intermediate. After a remarkable drop in the last few days, today it exceeded 100 Dollars, and it experienced an increase of almost 1%, thus passing to the price of 105 dollars per barrel.
And as for the price of Algerian oil “Sahara Blend”it recorded, yesterday April 04, 2022, a slight increase, the price of the barrel reached 110 dollars.
A downward trend in oil prices over the past 15 days
Following the sanctions imposed on Russia, and given that it dominated the production and export of oil in the world, national oil exporters find themselves forced to increase their production in order to rebalance the market.
In the meantime, US President Joe Biden had declared that they would still draw on their strategic reserves to stabilize the market. And that they were going to withdraw American strategic reserves of oil, an amount of up to one million barrels a day. This can cover a period of 6 months starting in May. This procedure aims to fill the gap and stabilize the market.
As a result of this statement, oil prices fell by around 13% over the past week. This decline is also due to the armistice in Yemen, which reduced fears of oil supply disruptions.
The International Energy Agency had previously announced that markets could lose 3 million barrels per day from Russia from April 2022, which would be much more than the expected drop.