![]() Underinvestment in oil and gas production over the past few years is also hindering the ability of oil producers to increase output.īrent may "overshoot" $125 a barrel this year and $150 in 2023, since Opec's spare capacity is below market expectations and impedes its ability to respond to high oil prices, JP Morgan said in December. However, top banks and oil companies have forecast that crude may soon pass $100 a barrel, partially driven by oil producers' inability to hit their planned supply output increases in full in recent months. Opec+ stuck to its plan to increase production by 400,000 barrels a day for February. The 23-member group, led by Saudi Arabia and Russia, will meet on February 2 to decide future production limits that are in place to support the energy market. ![]() ![]() Restrained production from Opec+ is also shoring up oil prices. Oil rose more than 67 per cent last year as demand was sustained despite coronavirus-driven headwinds. MELBOURNE: Oil hit its highest since 2014 on Tuesday as tensions between Russia and Ukraine escalated after Moscow ordered troops into two breakaway regions in eastern Ukraine, adding to supply concerns that are pushing prices to near 100 a barrel. Although the human cost of military action is incalculable, global stock markets in general reacted to the invasion with wide swings before closing. The world is watching anxiously as the Russian military moves deeper into Ukraine, expanding an invasion that began Wednesday night. Energy Markets Are Jittery as Russia-Ukraine Tensions Drag On Oil prices are well over 90 a barrel, and an invasion would most likely push them above 100. The contract jumped 2.2 in the previous session. ![]() Oil prices hit seven-year highs last week on worries that supplies could tighten due to Ukraine-Russia tensions. Reflecting the uncertainty, stock markets were sliding lower. Russia-Ukraine: Navigating Markets on Edge. Brent crude futures edged up 13 cents, or 0.2, at 88.33 a barrel at 0730 GMT, paring losses earlier in the session. TOKYO Brent crude edged up on Wednesday as geopolitical tensions in Europe and the Middle East raised supply concerns while investors locked in profits ahead of updates from the U.S. A Russian soldier attends a military exercise at the Golovenki training ground in the Moscow region, Russia. Oil Markets on Edge as Russia-Ukraine Tensions Drag On - WriteCaliber Oil prices are well over 90 a barrel, and an invasion would most likely push them above 100. ![]()
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