Home » [상보] Oil prices rise for 4 weeks in a row on fears of war in Ukraine

[상보] Oil prices rise for 4 weeks in a row on fears of war in Ukraine

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[상보] Oil prices rise for 4 weeks in a row on fears of war in Ukraine

Russia blocking the Black Sea, oil price variable
Declining U.S. inventories also pressures oil prices

A pumping jack pumps oil from an oil field near Lovington, New Mexico. Lovington/AP News

Oil prices rose on fears of a supply shortage due to the war in Ukraine.

On the 21st (local time) at the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) for September delivery closed at $77.07 per barrel, up $1.42 (1.88%) from the previous trading day. On the ICE Futures Exchange in London, September Brent crude oil rose 1.43 dollars (1.8%) to 81.07 dollars per barrel.

International oil prices rose for the fourth week in a row. WTI hit a new high since April 25th. Price Futures analyst Phil Flynn told CNBC, “The oil market is slowly starting to build in price levels as a supply crisis looms. Global supply is starting to tighten and could accelerate dramatically in the coming weeks.” He went on to warn that “the growing risk from the war in Ukraine could also affect oil prices.”

This week alone, Russia attacked Ukraine’s food export infrastructure for four days in a row and conducted ship capture drills in the Black Sea. Russia’s scrapping of the Black Sea grain agreement is putting pressure on both food and energy prices.

Meanwhile, the U.S. Energy Information Administration (EIA) announced that crude oil inventories fell as crude oil exports soared and refinery utilization rates increased. Already predicting that US oil and gas production in August could decline for the first time this year, the news further raised concerns about supply shortages, CNBC pointed out.

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In addition, the Chinese government’s announcement of stimulus measures to boost sales of cars and electronic devices has been a driving force for oil prices.

“Next week, S&P Global’s preliminary Purchasing Managers’ Index (PMI) will be a key indicator for investors trying to track changes in global oil demand,” said Rob Haworth, chief investment strategist at USBank Asset Management.

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