Oil prices are rising today, and the price of Brent North Sea oil has risen above $ 90 a barrel for the first time in seven years. Geopolitical tensions in Europe and the Middle East, which could disrupt market supplies, are contributing to growth. These are already weak, Reuters reported.
At around 5:30 pm CET, the price of North Sea Brent crude gained 2.4 percent and sold for $ 90.33 a barrel. This is the first time since October 2014 that it has exceeded the $ 90 per barrel mark. At the same time, the US light oil WTI rose by 2.6 percent to $ 87.81 per barrel.
“Concerns about possible supply disruptions in the Middle East and Russia provide bull feed for the oil market,” said PVM analyst Stephen Brennock. Investors describe the bull market as one that has been growing strongly for a long time and the mood of investors is optimistic.
US President Joe Biden said on Tuesday that he would consider personal sanctions against Russian President Vladimir Putin in the event of Russia’s invasion of Ukraine. On Monday, the Yemeni Husi movement launched a rocket attack on a base in the United Arab Emirates.
Investors are also now waiting for the end of the two-day meeting of the US Federal Reserve Monetary Committee. The Fed is expected to indicate plans to raise interest rates in March due to high inflation.
Another important event for the oil market will be the OPEC + Group’s negotiations on extraction. The group includes members of the Organization of the Petroleum Exporting Countries and their allies, led by Russia. The meeting will take place on 2 February and OPEC + will consider a new increase in mining. OPEC + is gradually canceling the record reduction in production from 2020. It increases daily production by 400,000 barrels per month. However, actual mining has not yet reached this goal, as some countries are experiencing technical difficulties with increasing.
US oil reserves rose 2.4 million barrels last week. Analysts, on the other hand, expected a slight decline. Fuel stocks then rose for the most in almost a year.