Corona in focus: Oil prices are rising dramatically – the reasons | news

More recently, a barrel (159 liters) of Brent from the North Sea cost US$105.03. It was $6.60 more than the day before. The price per barrel of the American variety West Texas Intermediate (WTI) rose $6.64 to $100.93.

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Oil prices were boosted by the easing of otherwise strict corona measures in the Chinese financial metropolis of Shanghai. For days, authorities took action against a corona outbreak with harsh curfews. This weighs on Chinese economic activity and therefore on the demand for oil. The People’s Republic is one of the largest oil-demanding countries in the world. Oil prices had fallen significantly in recent days.

The expected drop in demand for crude oil from the OPEC oil cartel did not affect prices in this environment. According to the association, global oil demand will be significantly lower than expected this year, mainly due to the war in Ukraine. In its latest market report, OPEC lowered its average daily demand forecast for 2022 from 400,000 barrels to 100.5 million barrels (1 barrel 159 liters). Besides geopolitical developments, the spread of the omicron variant of the corona virus will slow oil demand in China and other countries.

EU foreign ministers could not agree to an embargo on Russian crude oil on Monday. However, according to European Commissioner for Foreign Affairs Josep Borrel, an embargo is not excluded. According to Barbara Lambrecht, crude oil expert at Commerzbank, the market is currently better supplied than feared. Thus, Russia would ship more and more crude oil. “While deliveries to northwest Europe are decreasing, they are increasing significantly to Asia,” says Lambrecht.



More oil price news (Brent)

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