The United States “collapsed” oil prices: what happened

Oil prices on the morning of March 31 fell. Thus, as of 8:24 GMT, Brent futures fell 63 cents to $78.64 per barrel. West Texas Intermediate (WTI) fell 44 cents to $73.93. The reason for the decline in prices lies in the uncertainty of inflation data in the US.

It is reported by Reuters. Markets are currently waiting for the data:

  • on US spending and inflation;
  • their impact on the US dollar.

“Oil prices fell on the eve of key data on inflation in the United States, which may determine possible changes in interest rates and the strength of the dollar,” the report says.

Thus, if the data expected on March 31 turns out to be negative, it is likely to cause anxiety in the market. Which, in turn, can lead to limiting the rate of growth in resource prices.

What will happen next

At the same time, 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.

“Demand from China – the world’s largest oil importer – continues to grow throughout the entire commodity complex. At the same time, its demand for oil exceeds 16 million barrels per day,” analysts explain.

US “defeated” Russian oil

Meanwhile, the US has become the EU’s top oil exporter, taking over from Russia. Moreover, Russia was also overtaken by Norway and Kazakhstan.

Thus, according to Eurostat, in 2022 Russia’s share fell from 31% in January to 4% in December. At the same time, the US increased its share from 13% to 18%. Norway increased its to 17%.

Deliveries from Kazakhstan, analysts say, remained within the same level of 8-14%. However, due to a sharp decrease in Russian exports, he managed to bypass the Russian Federation in this indicator.

As GLOBAL HAPPENINGS reported, at the same time, according to the International Energy Agency, after the EU embargo on Russian oil products came into force on February 5, their – as well as oil itself – total exports decreased by 500 thousand barrels per day (b / With). At the same time, deliveries of Russian oil to the EU decreased by 800,000 b/d.

Source: Obozrevatel

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