"Black Gold" oil rose in price by about 4% - Financiarul

“Black Gold” oil rose in price by about 4% – Financiarul

On Friday, August 19, 2022, the price of oil rose again. Currently, the “black gold” is up about 4% due to the latest data on US fuel consumption and Russian oil deliveries.

Specifically, today, August 19, 2022, the price of oil rose by about 4% as data on fuel consumption from the United States of America and estimates of a possible drop in oil supplies from Russia later this year increased fears that the slowdown in growth economic problems could undermine global oil demand.

Currently, Brent oil futures rose by US$3.41 (3.6%), reaching US$97.06 per barrel. US West Texas Intermediate (WTI) crude oil increased by 3 US dollars (3.4%), reaching 91.11 US dollars per barrel.

Meanwhile, crude oil prices rose more than 1 percent in the previous session, although Brent oil fell at one point to its lowest level since February as signs of an economic slowdown intensified in some states.

On August 12, crude oil inventories in the United States fell by 7.1 million barrels, according to data released by the Energy Information Administration. The data defied expectations that US crude inventories would fall by 275,000 barrels as oil exports hit a record 5 million barrels per day (bpd).

EU sanctions on Russian oil will cause a new wave of price increases

European Union bans on oil exports from Russia could limit the supply of “black gold”. When the restrictions on imports of Russian crude oil delivered by sea to the EU increase, we will face a new wave of price increases.

Thus, “EU embargoes will force Russia to cut production for about 1.6 million (bpd) by the end of the year, reaching 2 million bpd in 2023. EU embargoes on Russian oil imports will significantly tighten market conditions and they will raise the price of Brent oil to 119 dollars per barrel by the end of the year”, explained the consulting company BCA Research, reports the Reuters news agency.

However, Russia forecasts an increase in its oil production and exports until the end of 2025, according to a document issued by the Ministry of Economy in Moscow, which stated that Russia’s income from energy exports will increase by 38% in this year, partly due to higher volumes of oil exports.