Oil futures contracts closed higher this Friday (4), ending a week of gains for the barrel, and in which the possibility of the commodity reaching the level of US$ 100 is speculated.
Geopolitical tensions, especially disputes between Russia and Ukraine, and a series of problems in the production of important African exporters put greater pressure on supply in a scenario in which demand remains heated.
On the New York Mercantile Exchange (Nymex), a barrel of WTI oil due for delivery in March rose 0.24% ($0.21) to $86.82, up 6.32% on a weekly basis. On the Intercontinental Exchange (ICE), the barrel of Brent for the following month was up 2.37% (US$ 2.16) today, and 5.37% on the week, at US$ 93.27.
For Rystad Energy, a rise to around US$ 100 per barrel of oil on the futures market “cannot be ruled out”, as factors that increase demand and pressure on supply add up.
According to the consultancy, there is still a movement of investors abandoning “traditional stocks” in the technology sector to increase positions in less volatile commodities. The sharp rise today puts the commodity at its highest values in seven years, according to Rystad.
Among the factors driving the movement, the consultancy cites winter storms in the US that increase demand for heating fuel, as well as threats to global supply, such as the weak production outlook in Iraq and Russia, geopolitical tensions in Europe and an explosion at an oil field in Nigeria.
In the view of Capital Economics, with little important data to be released next week, attention in markets will be on any escalation of tensions between Russia and Ukraine.
If they result in Russia’s energy supply being throttled to the rest of the world, it could exacerbate an already undersupplied market and lead to a further rise in prices, he said.
South Sudan’s daily oil production fell by at least 8%, compromised by flooding and disruption caused by the covid-19 pandemic.
The country’s finance minister, Agak Lual, said on Friday that domestic oil production fell from 170,000 barrels per day (bpd) to 156,000 bpd, after local companies reduced their operations. In the US, the number of active oil wells and platforms rose 2 in the last week to 497, Baker Hughes reported today.
Errata: The first version of this text contained inaccuracies in the title and text. In the title, the correct thing is that the market started to consider the price of US$ 100 for the barrel, and not that “raises the barrel to the US$ 100 mark”. In the text, there was an error in the price of the WTI barrel. The close was up 2.26% ($2.04) at $92.31, not 0.24% ($0.21) at $86.82.
Source: CNN Brasil
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