Oil Prices Rise Due To The Situation in Ukraine
Oil continues to rise in price against the backdrop of new Western sanctions against Russia due to the situation in Ukraine.
The market continues to follow developments in Ukraine, where hostilities are taking place, and analyzes the reaction of international actors to these events. On Saturday, the G7 countries decided to disconnect some Russian banks from the SWIFT international payment system.
The bank's experts raised their monthly Brent oil price forecast to USD 115 per barrel from USD 95 per barrel. According to their calculations, the market will have to reduce demand by 4 million barrels of oil in order to overcome the negative effect of the loss of Russian energy exports. Even diverting oil flows to the East will not help improve the situation on the market, analysts say, since this would require an increase in transit time by 12 days, which is equivalent to the loss of 90 million barrels of oil.
The market is waiting for the OPEC + meeting which will decide on the April level of oil production in the countries included in the informal organization. Since last summer, OPEC+ countries have been increasing oil production by 400,000 barrels per day a month against the backdrop of a gradual recovery of the global economy from the crisis caused by the COVID-19 pandemic.