- The price of oil aims to a company more than $ 70.00 after a significant decrease on Friday.
- Russia-Ukraine peace will increase the flow of global oil supplies, which would weaken its price.
- OPEC plans to postpone the planned monthly supply.
West Texas Interidia (WTI), the future on NYMEX, bounces to approximately $ 70.44 in the European Monday session after publishing the lowest level for more than seven weeks about $ 70.00 on Friday. The oil price view is still unconfirmed as investors seek more development in the United States (United States) talks to end the war in Ukraine, which entered its fourth year on Monday.
Last week, the United States agreed to hold more talks with Russia after long discussions about a truce with Ukraine in Riyadh, without Ukraine and the European Union on the table. The US government also said President Donald Trump is expected to meet Russian leader Vladimir Putin by this month. During this Ukrainian leader Folodimir Zelinski, he made it clear that any agreement without his consent would not be acceptable.
Meanwhile, President Trump accused the Ukrainian leader of starting the war. On this, Zellinski said he was ready to step down if Ukraine gets NATO membership.
Positive developments in the peace talks in Russia and the United States will be an unsuccessful scenario of oil price. Europe and the United States are expected to restore their sanctions against Russia if it calls for war in Ukraine. Such a scenario will lead to an increase in the oil -saving oil flows.
Meanwhile, investors will also focus on OPEC’s decision on whether it will increase its monthly supply, which is expected in April. Last week, Bloomberg reported that OPEC was planning to delay the planned monthly supply.
Questions and answers in crude oil Brent
Brent crude oil is a type of crude oil located in the North Sea, which is used as a standard for international oil prices. It is considered “light” and “sweet” due to its high attractiveness and low sulfur content, which makes it easy to improve in gasoline and other high -value products. Brent Ramt Oil is a reference price for about two -thirds of the world’s oil supplies. Its popularity depends on its availability and stability: the North Sea region has a firm infrastructure for the production and transportation of oil, ensuring a reliable and consistent supply.
Like all assets supply and demand are the main engines of the Brent crude oil price. As such, global growth can be a driver to increase demand and vice versa for a weak global growth. Political instability, wars and sanctions can disrupt supply and influence prices. OPEC decisions, a group of main oil -producing countries, is another major drive. The value of the US dollar affects the price of crude oil, because oil is often traded in US dollars, and therefore the weakest US dollar can make oil more at reasonable and vice versa.
The weekly oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) affect the price of crude oil. The changes in stocks reflect fluctuations and demand. If the data shows a decrease in stocks, it can indicate an increase in demand, which increases the price of oil. Top stocks can reflect the increase in supply, which leads to low prices. The API report is published every Tuesday and effect evaluation operations the next day. Its results are usually similar, as it falls within 1 % of each other 75 % of the time. Environmental impact evaluation data is more reliable, as it is a government agency.
OPEC (the Organization of Petroleum Exporting Countries) is a group of 12 oil production countries that collectively decide production classes for member countries in meetings twice. Their decisions often affect the prices of Brent crude oil. When Opec decides to reduce the shares, it can tighten the supply, which increases oil prices. When OPEC increases production, it has an opposite effect. OPEC+ refers to an expanded group of ten additional members without OPEC, most notably Russia.
