At midday, the two major crudes, Brent and WTI, were trading just below, but not far from, their recent seven-year highs. A barrel (159 liters) of North Sea Brent cost $88.08. That was 36 cents less than the day before. The price of a barrel of the US West Texas Intermediate (WTI) variety fell by 24 cents to $86.72.
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In the past few weeks, oil prices have been driven primarily by a tight supply coupled with robust demand. According to observers, the OPEC+ oil group is sometimes well behind the production targets it has set itself. “The production level of Opec+ is now 790,000 barrels per day below the agreed level,” said Commerzbank analysts. “So you could say that OPEC+ is now two months behind schedule.” Since the summer, the producing countries have actually wanted to increase their daily production by 400,000 barrels.
Demand, on the other hand, is developing solidly despite the Omikron wave. Although the virus causes many infections, the symptoms of the disease are often weaker than those of earlier mutants of the coronavirus.
In the afternoon, the US Department of Energy will release its weekly stockpile figures for petroleum and oil products such as gasoline. On Tuesday evening, the American Petroleum Institute (API) reported a noticeable increase in national oil stocks. If the figures are confirmed by the government as a trend, it would be the first inventory build in several weeks.
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NEW YORK/LONDON (dpa-AFX)
More news about the price of oil (Brent)
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