US crude oil prices rise on Friday morning. However, on a weekly basis, the crude saw a drop in prices – so far by about 6 percent. As brokers note, a week of unstable trading is coming to an end on the fuel markets, in which investors’ concerns about the weakening of oil demand “clashed” with signals of a reduction in the supply of crude oil.
A barrel of West Texas Intermediate crude oil in deliveries on August costs 103.39 USD on NYMEX in New York, up 0.64 percent, but after a drop of approx. 6 percent since the beginning of this week.
Brent on ICE for September deliveries is trading at USD 105.85 per barrel, up 1.15%.
Oil prices. Still fears of recession
The prices of both of these benchmarks fell briefly below USD 100 per barrel this week, with crude oil prices fluctuating around USD 16 per barrel.
Investors in the oil markets still fear that the restrictive policy of the US Federal Reserve may herald a recession in US economy.
Two of the Fed’s hawkiest bankers, Christopher Waller and James Bullard, backed an increase in interest rates by Fed by 75 bp. at the meeting this month.
Petroleum. Less raw material may appear in the markets
Meanwhile, less oil may appear on the oil markets due to the possible limitation of Kazakh oil supplies.
A Russian court in Novorossiysk, on the pretext of violating ecological regulations, blocked the CPC (Caspian Pipeline Consortium) oil pipeline, the main route for oil exports from Kazakhstan.
This important export route for Kazakh oil is still operational, however, as the operator of the shipping terminal has appealed against the decision of the Russian court. One tanker is moored in the terminal from Thursday to collect crude oil.
“Kazakhstan’s oil exports via the CPC pipeline system is proceeding normally,” the Ministry of Energy of Kazakhstan announced in a press release.
European traders will closely follow the CPC’s oil flow, because if the pipelines close, it will further complicate the already tense supply situation in the oil markets.
CPC oil terminal
The CPC oil terminal is located on the Russian Black Sea coast, but is the main route for oil exports from Kazakhstan.
In July, about 1.24 million barrels of crude oil were to be released from this place, compared to 1.08 million barrels / d in June.
Crude oil shipments to Europe have fallen in recent weeks as a result of lower oil supplies from LibyaThe North Sea, West Africa and other oil-exporting countries.
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