Oil prices keep taking a bullish sentiment as the Brent inches higher to settle around 87 $/b .
Many assume that this surge of prices is only linked to the Opec + Voluntary cuts extended lately to the end of june but lets shed light on other factors :
1. The U.S. Administration has launched its plan to fill up the SPR , based on data released by the U.S. DOE ; on the the 18th of march the reserves were 362.25 mb , if we go back 03 months ago the reserves averaged 352.54 mb so an increase of almost 10 mb / 90 days so the SPR is absorbing about 111 thousand b/day.
2.Reports ( reuters) showing that ttacks with drones on the russian refineries ideled 7% of the russian capacity .
3. Iraq just announced its plan to curb oil shipment by 130 thous b/d.
4. the Opec+ voluntary cuts were 1.3 mb/ d in dec , but right now cuts have deepened with 0.9 mb/d.
5. Tension in the red Sea is feeding fears of instability.
6. As a result of the Climate change , we have a sentiment of premature summer as temp are increasing and pushing us to switch on the cooling systems.
Nb : looks the U.S. administration still skeptical and more aware about the negative impact of any reduction of the interest rates now as it will certainly participate to spike oil prices and this will not serve the politicians ( elections by Nov 2024).
