A week of highs and turbulence

 A week of highs and turbulence 


Et bilde som inneholder tekst, line, Plottdiagram, skjermbilde Automatisk generert beskrivelse 

Graph 1: price chart for Brent and crude oil from October 2023 until today. https://www.cnbc.com/2024/03/14/crude-oil-prices-today.html

 

This week’s highlights. 

 

  • - WTI settles at the highest since the start of November. 

  • - IEA, forecast a slight supply deficit for this year, instead of a surplus 

  • - Ukraine attacks Russian oil refineries.  

 

 

Price 

U.S. crude oil futures were at $81 a barrel on Thursday, ending the day at the highest level since early November. 

The WTI contract for April rose $1.54, or 1.93%, to settle at $81.26 a barrel. The Brent contract for May added $1.39, or 1.65%, to settle at $85.42 a barrel. 

 

Events 

The International energy revised the global demands to 1,3 million bpd, adjusted upwards by 110 000 bpd. The organization forecast a supply deficit for 2024 as OPEC + will keep its word, by cutting its production through the year. OPECS+ cuts of 2.2 million bpd have will officially start at the second quarter of the year. 

 

On Wednesday 13. March, Ukrainian drones attacked Russian oil refineries making the price rise by more than 2%. This shows the sensitivity of the oil market and highlights the risk to production and fuel supplies with the war in Ukraine. 

Ukrainian troops have targeted the Russian oil infrastructure since January with the aim to hurt the Russian economy. So far 25 % of the Russian oil refineries have been targeted by the Ukrainians, and more than 50% of Russia’s refineries are within the range of Ukrainian drone attacks, which might show further price adjustments with the attack. This week’s attacks come right before the presidential election this weekend.

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