Icebutik
  • Home
  • World
  • Anomalies
  • Unexplained
  • Phenomena
  • Weird
  • Odd News
  • Mysteries
  • Contact us
Facebook Twitter Instagram
Icebutik
  • Home
  • World

    Rights Groups Question ‘Pregnancy Register’ for Polish Women — Global Issues

    July 5, 2022

    Phosphorus bombs: What you should know about Russia’s alleged use | News

    July 5, 2022

    Ukraine’s prime minister says rebuilding will cost $750 billion

    July 5, 2022

    Highland Park shooting: Six dead in 4 July parade shooting near Chicago

    July 4, 2022

    Why We Need a Digital Safe Space for LGBTQ Youth

    July 4, 2022
  • Anomalies
  • Unexplained
  • Phenomena
  • Weird
  • Odd News
  • Mysteries
  • Contact us
Icebutik
Home»World»Brent oil hits $91 a barrel as Ukraine worries persist | Oil and Gas News
World

Brent oil hits $91 a barrel as Ukraine worries persist | Oil and Gas News

SteinarBy SteinarJanuary 27, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
Share
Facebook Twitter LinkedIn Pinterest Email

The rally in crude prices comes as the global economy contends with soaring inflation.

By Saket Sundria and Alex LongleyBloomberg

Published On 27 Jan 202227 Jan 2022

Brent oil hit a fresh a seven-year high as a robust crude market countered the U.S. Federal Reserve’s indication that it would soon start raising interest rates to quell inflation.

Benchmark futures added almost a dollar to trade near $91 a barrel, while West Texas Intermediate was also the highest since 2014. The recent rally in oil comes as physical supplies appear extremely tight. Key swaps tied to the North Sea market that helps price much of the world’s oil are trading at their firmest since 2019, while gauges of market strength, known as timespreads, are trading at their strongest level since November.

On Wednesday, the Fed endorsed interest-rate liftoff in March and opened the door to more frequent, potentially larger hikes than expected. The rally in crude prices is coming as the global economy contends with rampant inflation.

Oil rally

Traders are also tracking events in Ukraine on concern that Russia may launch an invasion after massing thousands of troops on the border, potentially disrupting energy supplies. Moscow has denied it plans to invade, but Citigroup Inc. said a rise in crude volatility is a sign that the market is pricing in an increased political risk premium, potentially of at least $5 a barrel.

Oil has rallied in the opening weeks of 2022 on the continued recovery in energy consumption from the ravages of the coronavirus pandemic. With global demand coming in stronger than expected and growing concerns about how much further producers will ramp up output, stockpiles at some key hubs have been waning early in the year.

“The development into 2022 has been strictly bullish with declining inventories so far this year versus a normal seasonal trend of rising inventories,” said Bjarne Schieldrop, chief commodities analyst at SEB AB. “As long as the inventory declines continue like this, the bull-train will carry on.”

Prices

  • Brent for March settlement rose by 0.7% to $90.59 a barrel at 8:37 a.m in New York
  • WTI for March delivery added 0.8% to $88.09 a barrel

Inventories at the key U.S. storage hub at Cushing fell again last week to hit the lowest level for this time of year in a decade. At the same time weekly oil product consumption is at its highest level for the time of year in at least 30 years, driven in part by a spate of cold weather in the U.S.

The Organization of Petroleum Exporting Countries and its allies including Russia will get a chance to weigh in next week when they meet Feb. 2. The coalition will probably rubber-stamp a hike of 400,000 barrels a day for March, according to delegates.

Related coverage:

  • The U.S. physical crude market is pricing near its strongest level in more than a year, and could get even stronger.
  • U.S. gasoline futures are at the highest premium to crude for this time of year since 2013 as refiners struggle to build supply ahead of summer.
  • U.S. propane demand stayed near to a record last week as wintry weather blasted through much of the country.

Related

Economy News Oil and Gas OPEC United States US & Canada
Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
Previous ArticleEasy Valentine’s Crafts for Kids
Next Article G.Tox Liver Detox Supplement: Breaking Down the Ingredients
Steinar
  • Website
  • Facebook
  • Pinterest

Related Posts

Rights Groups Question ‘Pregnancy Register’ for Polish Women — Global Issues

July 5, 2022

Phosphorus bombs: What you should know about Russia’s alleged use | News

July 5, 2022

Ukraine’s prime minister says rebuilding will cost $750 billion

July 5, 2022

Highland Park shooting: Six dead in 4 July parade shooting near Chicago

July 4, 2022

Leave A Reply Cancel Reply

Categories
  • Anomalies (432)
  • Icebutik Store (271)
  • Odd News (618)
  • Unexplained-mysteries (328)
  • Unexplained-phenomena (641)
  • Weird (10)
  • World (692)

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

Latest Posts

Maine coast sees alarming number of dead seals washing up, avian influenza is to blame

July 5, 2022

Perfectly Preserved Chimu Sculpture Found at Chan Chan, Peru

July 5, 2022

The Lure of Lake Monsters, Part 1

July 5, 2022
  • About us
  • Contact us
  • Privacy Policy
  • Terms of use
© 2022 Designed by icebutik

Type above and press Enter to search. Press Esc to cancel.