Oil prices are rising on global markets: key factors
21 May 11:03
Prices for benchmark crude oil grades are recovering modestly on the morning of Thursday, May 21, following a sharp decline at the close of the previous session. This is reported by "Komersant Ukrainian", citing Interfax-Ukraine.
July Brent futures on the London ICE Futures exchange, as of 8:17 a.m., are up $0.55 (0.52%) to $105.57 per barrel. On Wednesday, this contract fell by $6.26 (5.63%) to $105.02 per barrel.
July WTI crude oil futures on the New York Mercantile Exchange (NYMEX) have risen by $0.63 (0.64%) to $98.89 per barrel so far today. At the close of the previous session, the price of these contracts fell by 5.89% (5.66%) to $98.26 per barrel.
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The day before, oil prices fell following statements by U.S. President Donald Trump that the war with Iran would end “very quickly” and that Tehran “really wants to make a deal.”
“The oil market is too sensitive to news regarding Iran,” wrote ING analysts. “Market participants are paying close attention to rumors of progress in negotiations between Iran and the U.S. We’ve been through this many times before, and each time it ended in disappointment.”
Experts at Wood Mackenzie predicted yesterday that oil prices could reach $200 per barrel, and the global economy would face the most severe energy crisis in the last century if the passage of ships through the Strait of Hormuz is not restored by the end of 2026.
According to their estimates, the closure of the strait has reduced global oil and condensate production by approximately 11 million barrels per day. Additionally, the Middle East conflict has reduced liquefied natural gas (LNG) production by approximately 80 million tons per year, equivalent to 20% of the global market.
Meanwhile, on Wednesday, the U.S. Department of Energy reported that commercial oil inventories in the United States fell by 7.864 million barrels last week. Commercial gasoline inventories decreased by 1.548 million barrels for the week, while distillate inventories rose by 372,000 barrels. Analysts had forecast, on average, a decline in crude oil inventories of 2.9 million barrels, gasoline inventories of 2.1 million barrels, and distillate inventories of 1.1 million barrels, according to Trading Economics.
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