Brent oil prices jumped at the highest level in 7 | Oil and Gas Issues

Fear disappears with the need for Omicron, while offerings are amplified by various shutters.

Brent oil prices have skyrocketed in seven years as the demand for energy and the mineral deficit have led to the hottest oil markets in the world.

Futures in London rose to $ 88.13 a barrel, the highest since October 2014. Traders pay more for shipping in Asia, as fears diminish due to the abundance of omicron, as supplies grow with varying degrees from Libya to the north. America. A drone attack on an oil rig in the UAE on Monday brought global disasters.

Goldman Sachs Group Inc. raised its Brent forecast to 2022 and 2023 and predicted $ 100 oil price for the third quarter. Highlights have reversed over the last year in falling prices, making the market surprisingly less stable, it said.

“The critical damage from the omicron did not scare them, but the major drivers are on the sales side,” said Giovanni Staunovo, an expert at UBS Group AG in Zurich. “Demand continues to rise and storage capacity is declining, so prices can continue this year.”

The oil summit poses a challenge for consumer countries and central banks as they struggle to cope with rising prices while contributing to global growth. In particular, I am concerned that President Joe Biden is suffering as a result of his efforts to reduce fuel prices through the use of emergency equipment – as well as to stop OPEC – from failing to produce results.

Crude has embarked on a very hot year with the demise of manufacturers including Libya and increasing the development that comes with greater demand. There are powerful signals from the entire oil field, from diesel to jet fuel, which are rising in Europe as air travel struggles with omicron power. The Organization of Petroleum Exporting Countries is due to release its monthly report on Tuesday, providing a market profile.

The strength of the physical market has been fueled by a resurgence of conflict in the Persian Gulf, which accounts for about 40% of the world’s maritime oil.

Houthi militants in Yemen say they have attacked a plane in the United Arab Emirates that caused a fire outside the capital Abu Dhabi. The country is the third largest producer in OPEC.

“Market sentiment is still strong, and the UAE invasion has only increased prices,” said Warren Patterson, chief business officer at ING Groep NV. “The disruption of supply and demand for energy has made the oil market smaller than expected.”

Prices

• Brent on March settlement was 92 cents at $ 87.40 a barrel on the exchange of ICE Futures Europe at 12:06 pm London time. It reached its highest level since October 2014.
• Fast forward was 71 cents a barrel behind it, compared to 74 cents a week ago.
• West Texas Intermediate February delivery earned $ 1.23 from Friday at about $ 85.05 on the New York Mercantile Exchange.
• There was no termination on Monday due to the Martin Luther King Jr. holiday. Day in the US and events will be held Tuesday.

Other market news:

• China is still monitoring the timing and quantity of oil that can be released from the pipeline as the country takes action to implement a US-led plan to reduce electricity prices.
• OPEC + has done a lot to stabilize the electricity market and other oil producers should follow suit, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said in Dubai.
• The oil drill Vista expanded its acres at Vaca Muerta in Argentina to make shale by taking over ownership of two businesses and the Wintershall DEA.