(MENAFN- Youm7) The Organization of Arab Petroleum Exporting Countries, “OAPEC”, published the weekly developments in the global oil markets, in light of the Russian-Ukrainian crisis, as crude oil futures recorded their second weekly gains in a row. It amounted to 1.8% for Brent crude and 1.6% for West Texas American crude. With regard to the most important developments, it was as follows..
Q. What are the most important main factors supporting the rise in oil prices?
c. The main factors supporting the rise in oil prices included the following:
1- The International Energy Agency’s expectations regarding a shortage of oil supplies in the second half of 2023, with an expected rise in demand (especially in Asia) to exceed supplies by regarding 2 million barrels / day.
2- The decline in US commercial crude oil inventories, at the highest rate since November 2022, amounting to regarding 12.5 million barrels, coinciding with the increase in refinery demand and the decline in imports.
3-US gasoline futures rose on expectations that US Memorial Day will be the third busiest holiday for auto travel since 2000.
4- The decline in US gasoline stocks to the lowest level since November 2022, amounting to regarding 216.3 million barrels, before the start of the peak summer travel season.
5- The number of crude oil rigs operating in the United States of America decreased for the fourth week in a row, to reach 570 rigs, the lowest level since June 2022. An agreement is close to raising the US federal government’s debt ceiling of regarding $31.4 trillion, before the deadline for defaulting. Payment on the 5th of June 2023.
6- The Group of Seven major industrialized countries (G7) pledged to tighten restrictions related to the price ceiling imposed on Russian exports of crude oil and petroleum products.
Q. What regarding the other factors that limited the rise in oil prices?
c. Other factors that limited the rise in oil prices included the following.
1- Expectations regarding the non-approval of the OPEC countries’ alliance to approve further production cuts, during the meeting of the Joint Ministerial Follow-up Committee, scheduled to be held on the fourth of June 2023.
2- Slowing economic growth and high levels of inflation in Europe, amid expectations that the European Central Bank will move towards further raising interest rates.
world oil prices
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