(Archyde.com)
Oil prices rose on Monday, with Brent futures reaching their highest levels in more than three years, as investors bet that supplies will remain limited due to pressures on production from major producers, while global demand was not affected by the spread of the mutant “Omicron”. The new corona virus.
Brent crude futures rose 40 cents, or 0.5%, to $86.46 a barrel. Earlier in the session, contracts recorded $86.71 a barrel, the highest level since October 3, 2018. US West Texas Intermediate crude contracts also rose 58 cents, or 0.7%, to $84.40 a barrel, following reaching $84.78 a barrel, which is the highest. levels since November 10, 2021.
The gains follow a rally last week in which Brent crude rose more than 5% and West Texas Intermediate crude rose more than 6%.
Traders said that the high demand for oil purchases, driven by the lack of supplies, and indications that the variable “Omicron” did not affect demand as it was feared, pushed the prices of some types of crude to its highest levels in years, indicating that the rise in the price of Brent may continue for a longer period.
The “OPEC +” group is gradually reversing the production cuts that were implemented when demand collapsed in 2020. But many small producers cannot increase supplies, and others are concerned regarding pumping more in the event of a new setback in the “Covid-19” pandemic.
On Friday, US officials expressed concern that Russia was preparing to attack Ukraine if diplomatic efforts failed. Russia, which is massing regarding 100,000 troops on the border with Ukraine, released pictures of its forces’ movement.
Two US officials and two energy industry sources said Friday that the US government has held talks with several international energy companies regarding contingency plans to supply natural gas to Europe in the event a conflict between Russia and Ukraine disrupts Russian supplies.
On the other hand, US crude stocks fell more than expected to their lowest levels since October 2018, but gasoline stocks rose as demand weakened, according to US Energy Information Administration data.
Sources said that China intends to withdraw from its oil stocks near the Lunar New Year holiday, which begins on January 31 and will continue until February 6, as part of a coordinated plan with the United States and other major consumers to limit the rise in global prices.
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