In recent days, the international price of oil has started to fall significantly, which fuels the hope of drivers that the first reductions will appear at the pump. Well, if you are one of those people who have such a dream, take care of it. Crude oil prices have started to rise again and it is possible that drivers will be panicked again this time, unfortunately.
Brent crude oil futures rose $ 6.12, or 5.3%, to $ 121.60.
In the same vein, futures contracts for the West Texas Intermediate (WTI) crude oil, a benchmark in the US market, increased by $ 5.66 or 5.2% to $ 114.93 per barrel.
Why did this happen overnight?
Energy experts tell us that these unfavorable price developments on the international crude oil market are due to disruptions in crude oil exports from Russia and Kazakhstan through the Caspian Pipeline Consortium (CPC) pipeline due to bad weather. That being the case, investors have become particularly concerned about global supply.
Unfortunately, a port agent and the head of the CPC claim that the bad weather continues, according to the international press. Russian Deputy Prime Minister Alexander Novak later said that the CPC’s oil supply could be completely shut down for up to two months.
Let us not forget the strategic importance of Russia in this vital market. Moscow is the world’s second largest exporter of crude oil, after Saudi Arabia. Specifically, the Russians export between 4 and 5 million barrels of crude oil every day. Given that the military conflict in Ukraine seems far from over, analysts do not take kindly to the evolution of crude oil markets.
“If there is any expectation that the war will subside, it is not the case. You can expect more markets to contract, ”said Claudio Galimberti, senior vice president of analysis at Rystad Energy.