2023-07-13 21:16:10
New York: Oil prices rose on Thursday driven by several factors, including the decline in the dollar, a craze for risky assets and supply tensions, particularly in Libya.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. from the North Sea for September delivery gained 1.56% to $81.36.
Its American equivalent, 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.) for August delivery, took 1.50% to $76.89.
The two global crude benchmarks are moving to their highest levels for more than two months.
“The decline in the dollar has certainly helped prices,” commented Matt Smith of Kpler. The note weakened in the wake of good news on the side of US inflation which is slowing and which makes it less likely that a continuation of rate hikes by the US central bank (Fed) beyond July.
Oil which is exchanged in dollars becomes cheaper, which is offset by a rise in prices.
The Kpler analyst also notes that crude oil is benefiting from investors’ enthusiasm for risky assets, be it equities or commodities, as bond yields ease.
Finally, the rise in prices accelerated in the second part of the session following press reports evoking a stoppage of production from the Libyan oil fields al-Fil and al-Charara, the most important.
“Potential production disruptions in Libya have accentuated the rise in prices,” commented Matt Smith.
While the country is experiencing intense tensions, these oil fields from which a third of Libya’s black gold production comes, would be blocked by protesters, according to information circulating on social networks, not verified by AFP .
These factors come once morest the backdrop of supply tensions with Saudi Arabia which announced in early July that it was extending its oil production cut by one million barrels per day in August.
This decision maintains the kingdom’s production at around 9 million barrels per day, “a level lower than that of Russia, which produced 9.6 million barrels per day in June”, said Ole Hvalbye, analyst at Seb.
The other heavyweight of the OPEC + cartel (the organization of petroleum exporting countries and their allies) has for its part committed to lowering its exports by 500,000 barrels per day in August.
(c) AFP
Oil climbs on tight supply and weaker dollar
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