Posts

Showing posts from January 23, 2022

Rising oil prices and the inevitable US crude inventory build

Image
  The price of crude oil fell on Thursday in light of the second successive crude inventory build announced by the EIA, the US Energy Information Administration, on Tuesday. The EIA reported an inventory build of 2.4 million barrels for the week ending January, 21. It is a significant build, compared with the reported figure for the previous week - a modest 0.5 million barrels. As of 16:30 GMT, the price of WTI and Brent stood at $87.24 and $89.88 respectively. Earlier on, the latter even hit $91, only to come down later. The rise in crude oil price and that of natural gas may be related to the ongoing conflict between Ukraine and Russia too. Russia is a key player in the energy sector and analysts are watching President Putin’s next move carefully in order to gauge the immediate impact on the markets. The growth of the US crude inventories and the false dawn about a breakthrough between the US and Russia relations may have triggered off the fall in the crude oil prices, earlie

Conflicts in the Eastern Europe and Middle East push the crude oil prices down

Image
As the conflict between Ukraine and Russia intensifies, the crude oil prices stumbled in the crude oil markets, falling from the record prices on Friday, last week. The prices started falling despite the involvement of a key player in the global energy markets in the growing conflict. The NATO, meanwhile, has started deploying its fighter jets in the Eastern European countries, which are members of the organization, as deterrence, rather than a show of force. Russia, in turn, is planning its naval exercises in the international waters off Ireland, something that the latter is not very fond of observing. The US, meanwhile, is planning to deploy thousands of troops in the region, while providing Ukraine with military assistance. Although the sabre-rattling is on the rise, a direct military confrontation is unlikely between the warring factions at present, as both sides are fully aware of the cost on many fronts – when the world can least afford it. As far as the crude oil marke