Oil prices firmed after attacks on Russian refineries
2024-03-14
Summary:
Oil prices are nearing a 4-month peak. Surging 3% on Ukraine's attacks on Russian refineries, an unexpected drop in US crude inventories.
Oil prices traded around four-month high on Thursday. They jumped about 3% in the previous session after Ukrainian attacks on Russian refineries and data showed that US crude inventors dropped unexpectedly.
Ukraine struck oil refineries in a second day of heavy drone attacks, causing a fire at Rosneft's biggest refinery in what President Vladimir Putin said was an attempt to disrupt his country's presidential election this week.
Despite his warning that Russia was technically ready for nuclear war and that if NATO sent troops to Ukraine, Putin, however, added that he saw no need for the use of nuclear weapons in Ukraine.
US energy firms pulled a surprise 1.5 million barrels of crude from stockpiles during the week ended 8 March, according to EIA. Analysts forecast in a Reuters poll forecast a gain of 1.3 million barrels.
OPEC on Tuesday stuck to its forecast for relatively strong growth in global oil demand in 2024 and 2025, and further raised its economic growth forecast for this year saying there was more room for improvement.
Hopes of a ceasefire in Israel's war against Hamas have faded while Israel and Lebanon's Hezbollah continue to exchange fire. Traders are becoming inured to Houthi’s attacks in the Red Sea though.
Brent crude has been fluctuating around 200 SMA since early February with the upper end of its trading range at $84.20 capping the further rally. The sideway trend will remain intact until the price breaks below $80.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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