OIL PRICES SUPPORT LIMITED SUPPLY AND INCREASE DEMAND
Oil prices rose on Wednesday in international markets spurred by scarce stocks and the prospect of increased demand during the summer season of travel in the world’s largest consumer of crude oil, the United States.
The price of a barrel on the London market rose 99 cents compared to the previous close, to $ 114.55, while a barrel was traded on the US market at a $ 1.16 higher price, at $ 110.93.
Insufficient gasoline supply helps oil prices. Stocks of refined petroleum products fell 4.2 million barrels last week, according to market sources citing data from the American Petroleum Institute.
Roads are expected to be the busiest in the past two years over the Remembrance Day holiday weekend, boosting fuel demand, following restrictions due to the coronavirus pandemic and despite high fuel prices.
At the same time, global crude oil inventories continue to decline as buyers avoid oil from Russia after its invasion of Ukraine. The EU hopes to agree on sanctions to phase out Russian oil imports before the next European Council meeting, Council President Charles Michel said on Wednesday.
A record amount of Russian crude oil of the Urals brand is stored in ships on the high seas, while buyers are trying to find it. On the other hand, demand is being pushed by China’s strict approach to the pandemic. The world’s largest oil importer has introduced new bans, and Shanghai plans to keep most of the restrictions imposed because of covid.
In a separate report, the Organization of the Petroleum Exporting Countries (OPEC) announced today that the price of a barrel of oil baskets of its members on Tuesday cost 114.96 dollars and fell 99 cents compared to the previous working day.