Peak driving season may further push up oil prices
Light, sweet crude is easier to refine into gasoline and diesel products, and tight supply in the oil market has led to a rise in demand for light, sweet crude, helping Brent maintain its strength. Uptrend. The premium for U.S. WTI to Rotterdam spot Brent is $7/bbl. Summer driving peaks and maintenance of North Sea fields could push oil prices further. The momentum to stimulate the current oil price rise is similar to that in 2008, but if demand for refined oil falls sharply, Brent may lose the upward momentum brought by refineries.
High oil prices will drag down crude oil demand
Hungary is still opposed to the EU’s crude oil ban, but the EU still believes that the ban will be implemented smoothly, but when it will be implemented and whether it will have an actual impact is another matter. The reopening of Shanghai is positive for oil prices, but concerns over economic growth may cap gains in oil prices. The cost of living crisis has arrived, and high oil prices will weigh on household budgets and drag down oil demand.
The crude oil physical market is digesting the strategic crude oil reserves released to meet the demand for crude oil, but the trend of crude oil-related assets in the speculative financial market is disconnected. For businessmen, this summer may be tough.
Oil prices likely to soar in the near future
Crude oil market jitters and the gradual recovery of the Chinese economy have supported oil prices. Meanwhile, Europe continues to consider an embargo of crude oil and crude oil products against Russia. Although the price of Brent crude oil close to 114 US dollars / barrel has already included the impact of the cutoff of Russian crude oil supply, but if the embargo, the peak driving season in the United States and the unblocking of Shanghai come at the same time, the rise in crude oil demand will make oil prices exist The possibility of soaring. A string of highly favorable news for now should support oil prices, and despite market controversy, crude demand will not experience the cyclical “decline” most analysts think. EU imposes embargo on Russian crude even if Hungary disagrees It is also only a matter of time. The ban is currently supported by 26 EU countries, and Russia’s crude oil exports are under constant pressure.