Oil prices took another dip this morning in commodity markets, with Brent trading around $85 a barrel and West Texas (WTI) slightly above $79.
In detail, Brent for May delivery is worth $85.21 a barrel while 159 liters of WTI for April delivery is trading at $79.12.
Last week was tumultuous for the oil market, due to rumors that the United Arab Emirates was considering leaving OPEC, which led to a drop in prices. However, those losses were quickly reduced after officials denied the information. Brent for May delivery rose 0.7% on Friday to $85.32 a barrel with weekly gains of 3.1%.
China, the world’s largest oil importer, is also a key driver of the price hike. After the country’s borders reopened following three years of closure due to the Covid-19 pandemic, demand for crude oil has increased, leading analysts to forecast a rally to $100 a barrel later this year. . Amin Nasser, CEO of the world’s largest crude oil exporter, Saudi Aramco, commented that “ demand from China is very strong “.
Still, some Wall Street analysts have revised their forecasts down, with Morgan Stanley seeing less chance of Brent rising above $100 a barrel this year, while Bank of America Corp. indicates that there is less risk of a price spike due to the intensity of oil flows from Russia.
Mariem Ben Yahia
Published on 06/03/23 09:37
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