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Showing posts from February 13, 2022

Oil Price: is Iran ready to enter the crude oil markets, finally? Foreign minister implies so!

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The price of crude oil that fell yesterday in the aftermath of the Russian announcement of troops going back to their barracks from the border with Ukraine, has started its upward trend again, when the West expressed scepticism over the move. As of 14:00 GMT, the price of WTI and Brent were at $93.75 and $95.07 respectively in the crude oil markets. Despite the Western reservations, President Putin of Russia keeps insisting that he does not want yet another war in Europe; the Kremlin termed the issue as hysteria manufactured by the Western media and politicians. The manner, in which crude oil price fluctuated within 24 hours, clearly reflects the genuine anxiety felt by investors and analysts over a possible military conflict, even if it is not a full-scale-war and the inevitable cascading effect encompassing the crude oil markets. There are already concerns about the inability of the producers to meet the demand; it goes without saying the impact in these circumstances, in the

Oil Price: it is nearing the psychologically signifcant $100, a barrel!

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  The price of crude oil is approaching $100 a barrel and the geopolitical tension involving Russia and the West that shows no sign of abating will finally determine the psychologically important benchmark in the next few days. As of 16:00 GMT, the price of WTI and Brent stood at $93.62 and $94.72 respectively. With the price of crude oil reaching a 7-year-old high and consumers feeling the pinch on many fronts, ranging from rising energy bills to steep increase in food prices, things cannot get any worse in the current circumstances for most people whether they live in the East or West – or anywhere in between. All this happens when the world is still reeling from the once-in-a-century pandemic. Although the OPEC+ agreed to keep producing extra 400,000 bpd in order to meet the rising demand, whether the members of the cartel live up to the individual contribution, remain to be seen; it has been the case in the past few months, citing lack of investment in the sector. In short,