World oil prices rose on March 29. As of 6:56 GMT, Brent futures rose 42 cents to $79.07 a barrel. And the West Texas Intermediate (WTI) brand rose even more – by 60 cents, to $73.8 per barrel.
It is reported by Reuters. The reasons for the growth were:
- a halt in exports from Iraqi Kurdistan that “raised concerns about reduced supplies”;
- reducing fears of a global banking crisis;
- the expectation that the US Federal Reserve will maintain a cautious stance on raising interest rates;
- falling stocks of crude oil in the United States
“Concerns about reduced supplies from Iraqi Kurdistan and easing in financial markets, preoccupied by turmoil in the banking sector, continue to increase investor risk appetite. … Prices have also received support from falling US crude oil inventories. [Згідно з наявними даними] Crude oil inventories have fallen by 6.1 million barrels.
Ukraine intends to force Russia to pay more for oil
Meanwhile, Ukraine intends to double the tariff for Russia on oil transit via the Druzhba pipeline. This is expected to happen on April 1st.
Thus, the Russian Federation will pay 27.2 euros per ton of pumped oil, according to Russian media. They note that the increase in the tariff in Kyiv is explained by the costs of restoring the oil transportation infrastructure damaged as a result of Russian armed aggression.
At the same time, it is noted that the supply schedule for the southern branch of Druzhba in the second quarter of 2023 (April-June) provides for an increase in oil shipments by almost 30%. Thus, about 4 million tons of Russian oil will be pumped over three months.
Moreover, Nikolai Tokarev, the head of the Russian Transneft, said earlier that “at the end of the year, supplies in this direction are expected to be at last year’s level.” Then 12 million tons of Russian oil passed through the pipeline.
As GLOBAL HAPPENINGS reported, according to forecasts, oil prices will rise significantly in the future. In particular, the material notes, Brent is expected to cost $97 per barrel in the second quarter of 2024.
Source: Obozrevatel
I am a journalist who writes about economics and business. I have worked in the news industry for over 5 years, most recently as an author at Global Happenings. My work has focused on covering the economy news, and I have written extensively on topics such as unemployment rates, housing prices, and the financial crisis. I am also an avid reader and have been known to write about books that interest me.
