NEW YORK – Los prices international Petroleum rose again on Wednesday driven by tensions in Middle East and due to solid demand for fuel last week in the United States.
In addition, the Opec+ alliance recommended, during its technical meeting this Wednesday, maintaining the strategy of production cuts, a position that supports prices.
Thus, in London, a barrel of North Sea Brent for delivery in June rose 0.48%, quoted at $89.35.
Meanwhile, in New York, a barrel of West Texas Intermediate (WTI) for delivery in May grew 0.32%, closing at $85.43.
The two barrels of crude oil have not stopped rising since the end of October, with Brent touching $90.
“The growing geopolitical risks linked to the escalation of the conflict in the Middle East, supply reductions by OPEC and the improvement of data from China contribute to fueling” this price increase, summarized James Harte, from the consulting firm Tickmill.
Investors remain concerned about potential oil supply disruptions following Monday’s airstrikes blamed on Israel, which left at least 13 dead at Iran’s consulate in the Syrian capital, Damascus. Among the dead are seven Iranian soldiers. Iran guaranteed that it will retaliate for the action.
The US crude oil reserves report also supported the market.
Commercial oil stocks rose more than expected last week in the world’s largest economy, although the market was buoyed by a sharp drop in gasoline stockpiles, reflecting strong demand.
According to data from the US Energy Information Agency (EIA), crude oil reserves increased by 3.2 million barrels (mb) in the week ending March 29, when analysts expected a drop of 1 mb. The total stored reached 451.4 mb.
On the other hand, gasoline stocks contracted by 4.3 mb, contrary to what the market expected.
The United States Department of Energy explained on Wednesday that it will not purchase about 3 mb of oil for its strategic reserves (SPR) for now due to the high price of black gold.
Source: With information from AFP
