After a slight decline in oil prices at the beginning of trading today, Tuesday, May 17, the market turned to the upside, supported by the insistence of the European Union to ban Russian oil.
Crude prices started their trading yesterday, Monday, May 16, with a noticeable decline, before turning to the upside, so that investors reap good profits from the recent rise.
Oil prices began trading with a slight decline, after the European Union foreign ministers failed to pressure Hungary to lift its veto against the oil embargo coming from Moscow, after the Russian invasion of Ukraine, and then the decision that needs the approval of all member states of the Union was disrupted.
Oil prices today
Brent crude rose 0.77% to $115.01, by 10.30am GMT; 01.30 pm Mecca time.
Brent crude futures for July delivery were down 11 cents, or 0.1%, to $114.13 a barrel, by 8:00 a.m. GMT; 11.00 am Mecca time.
US West Texas Intermediate crude futures for June delivery rose 0.73% to $114.93 a barrel.
The two benchmark crudes rose more than 2% on Monday, May 16, after oil prices jumped 4% on Friday, May 13.
supply of oil
American producers are intensifying the supply of crude oil, to replenish stocks that fell sharply after the Russian war on Ukraine, and the violent new outbreak of the Corona virus in some Asian countries, led by China.
The US Energy Information Administration said that oil production in the Permian Basin in Texas and New Mexico, the largest producer of shale oil in the United States, is set to rise by 88,000 barrels per day to a record high of 5.219 million barrels per day in June.
Despite this move and the announcement, the general sentiment regarding prices remains bullish amid optimism for a recovery in demand in China, looking to ease the restrictions of the Corona virus that have hurt its economy.
All data on supplies suggests that declines will be slight, despite the damage to demand from the shutdown in China, so there is still light at the end of the tunnel, said Stephen Innes, managing partner and analyst at SBI.
Shanghai announced that it had not recorded any new cases over the past 3 days, as it set a timetable for exiting the closure, which is currently entering its third week.
For its part, CMC Markets analyst Tina Ting said that oil prices rose, supported by the growing geopolitical tension between the European Union and Russia, as Sweden and Finland seek to join NATO, which may cause a retaliatory move from Moscow, which may cut more from the gas supply.
Data from the US Department of Energy showed that stocks in the strategic oil reserve fell to 538 million barrels, the lowest level since 1987.
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