Crude oil prices rose about 1%, during today’s trading, Friday, February 24 (2023), to continue to reap gains for the second consecutive session.
The prospect of lower exports from Russia offset higher oil inventories in the United States; This raised fears of a supply shortage.
Crude oil prices today
By 07:21 AM GMT (10:21 AM Mecca time), the prices of benchmark Brent crude futures – for delivery in April 2023 – increased by 0.95%, to reach $ 82.99 per barrel.
The price of US West Texas crude futures – April 2023 delivery – increased by 0.93%, to $76.09 a barrel, according to data seen by the specialized energy platform.
Crude oil prices ended their trading, yesterday, Thursday, February 23, with an increase of about 2%, with the release of the inventory report in the United States.
Oil market analysis
Crude oil prices received a boost from Russia’s plans to cut oil exports from its western ports by up to 25% in March, which exceeds announced production cuts of 500,000 barrels per day.
“Better-than-expected US crude oil inventories continue to challenge the outlook for oil demand, but expectations of lower Russian production are having an offsetting effect,” said market analyst at IG, Yip Jun Rong.
US inventories reached their highest level since May 2021, according to data seen by the specialized energy platform.
US oil stocks
Data from the US Energy Information Administration said that US oil inventories rose by 7.6 million barrels to about 479 million barrels in the week ending February 17.
Over the course of the week, Crude Oil prices eased slightly, after last week’s drop of about 4%, also weighed down by concerns about rising interest rates that could boost the dollar.
The minutes of the last meeting of the US Federal Reserve indicated that the majority of officials remain optimistic about inflation and tightening labor market conditions; Which indicates more monetary tightening.
The prospect of interest rate hikes supported the dollar index, which was set for a fourth consecutive week of gains.
The dollar makes commodities priced in the US currency more expensive for holders of other currencies.
“The focus as we close the week will be on what happens with the next inflation report, will the market become more nervous about further Fed tightening?” said OANDA analyst Edward Moya, according to Reuters.
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