OPEN LETTER/ Come to the dialogue and listen to me speak, otherwise I will cut off your scholarships, you will rot in prison. Please!

 Kliko këtu për të tjera
Voxpress:

The increase in the price of oil, what is increasing its cost?

2024-04-03 12:34:01Kosova&Bota SHKRUAR NGA REDAKSIA VOX

The increase in the price of oil, what is increasing its cost?

Brent crude oil prices hit a new five-month high on Tuesday morning at $88.3 a barrel. This was a weekly increase of 3.3% and a monthly increase of 7.7%. Crude oil prices also advanced 1% on Tuesday morning to $84.6, up 3.8% this week and 8.4% this month.

This was mainly due to the escalation of geopolitical tensions, especially in the Middle East, as well as speculation about the decline in Mexican oil supplies in the near future. Oil markets are also seeing the effects of the Organization of the Petroleum Exporting Countries (OPEC+) extending voluntary cuts for the second quarter of the year last month.

Better-than-expected manufacturing purchasing managers' index (PMI) reports from China and the US also contributed to positive oil sentiment. This is due to investors expecting both of these countries to soon see increased demand in the manufacturing and industrial sectors.

The rise in oil prices also weighed on the FTSE 100 index, which rose over 8,000 points on Tuesday morning.

Oil prices are particularly sensitive to geopolitical fluctuations, particularly in the Middle East. As such, the Israeli airstrike on an Iranian embassy in Syria on April 1 has led to increased concerns about escalating tensions in the region.

This comes amid the ongoing Israel-Hamas war, which has also sparked Yemeni Houthi rebel attacks in the Red Sea. Because of this, oil and gas shipments traveling through the Red Sea and the Suez Canal have also been disrupted and severely delayed. Several shipping companies now travel across the African continent. This, on the other hand, has also contributed to the increase in oil prices.

Mexican state-controlled oil firm Pemex has also unveiled plans to cut crude oil exports in the coming months, raising fears of more supply disruptions. OPEC's upcoming joint ministerial meeting on April 3 is also expected to analyze current market conditions and see whether member countries are sticking to production targets.

Expectations for increased Chinese demand, following various encouraging economic data reports in recent months, have contributed significantly to this positive oil sentiment. That's because Chinese demand is a major factor affecting oil prices, second only to geopolitical tensions.


Në përputhje me standarded JTI

Video

SHIKO KANALIN NE YOUTUBE
×