Oil prices are rising on global markets: key factors
14 May 12:05
Oil prices are rising moderately on the morning of Thursday, May 14, following a decline the previous day. This is reported by "Komersant Ukrainian", citing Interfax-Ukraine.
July Brent futures on the London ICE Futures exchange, as of 8:08 a.m., are trading at $106.26 per barrel, up $0.63 (0.6%) from the previous session’s close. On Wednesday, these contracts fell by $2.14 (2%) to $105.63 per barrel.
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WTI crude oil futures for June delivery on the New York Mercantile Exchange (NYMEX) have risen by $0.66 (0.65%) to $101.68 per barrel. At the close of the previous session, their price fell by $1.16 (1.14%) to $101.02 per barrel.
Market participants are awaiting the results of the meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Trade issues are expected to be the main topic of discussion. The White House chief previously stated that he intends to discuss the Iranian crisis in detail with the Chinese leader, although he noted that Washington is unlikely to need Beijing’s help in resolving the conflict with Tehran.
The market is in a wait-and-see mode, ING experts wrote in an analytical review. Traders may be placing too much hope on the fact that the talks in Beijing will help improve the situation in the Middle East, they believe.
The Strait of Hormuz remains blocked due to the U.S.-Iran conflict, hindering oil supplies from the Persian Gulf countries.
“If significant progress in opening the strait cannot be achieved, the U.S. may have no choice but to resume military action,” noted IG analyst Tony Sycamore.
The International Energy Agency (IEA) presented new estimates on Wednesday that predict a supply deficit in the oil market this year, whereas a surplus was forecast as recently as April. The IEA report emphasizes that the war in Iran is causing serious damage to energy production in the Middle East and is depleting reserves at an unprecedented rate.
Meanwhile, the U.S. Department of Energy reported yesterday that commercial oil inventories in the country fell by 4.306 million barrels last week. Commercial gasoline inventories decreased by 4.08 million barrels, while distillate inventories rose by 190,000 barrels.
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