Oil prices rose on Wednesday after a fire in a pipeline in Iraq a Turkey flow stopped short, which raises concerns in a scenario with a very tight short-term supply outlook.
Flow has resumed through the Kirkuk-Ceyhan pipeline, which transports crude oil from northern Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC), to the Turkish port of Ceyhan for export.
The blast that caused the pipeline fire in Turkey’s southeastern province was caused by a falling power pole, not an attack, a senior security source said.
Concerns have escalated this week after Yemen’s Houthis attacked the United Arab Emirates, while Russia, the world’s second-largest oil producer, has stepped up its troop presence near the Ukrainian border and fueled fears of an invasion.
crude oil futures Brent they rose 93 cents, or 1.06%, to $ 88.44 a barrel. The global benchmark previously touched $ 89.13, the highest since October 13, 2014. U.S. West Texas Intermediate Crude Contracts (WTI) rose $ 1.53 to $ 86.96 a barrel, the highest since October 9, 2014.
OPEC officials and analysts said oil rally could continue in the coming months and prices could be above $ 100 a barrel as demand recovers, despite the spread of the coronavirus omicron variant.
“No matter how you calculate the numbers, it looks like world stocks will continue to shrink for a few more months, and this implied tightening of balance sheets will keep this bull alive for the rest of this month and most of next.” says Jim Ritterbusch, president of Ritterbusch and Associates LLC.
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Reference-www.eleconomista.com.mx