Crude oil is getting more and more expensive
“Black gold” has been reached in recent days on Gie³dach Very high levels. Brenet oil barrel Priceing is on Tuesday evening at $ 65.6 (daily increase by 1.56 percent)and the WTI barrel costs $ 63.4 (daily increase by 1.46 percent). Prices They go up because on the market oil A lot is happening. In recent days, both geopolitical and environmental situation.
Geopolitical turmoil
First of all – geopolitics. Countries, which are important players on the oil market, have been in recent days in a heavily tight position. The Russians did not get along with the Ukrainians on a peaceful solution, and Ukraine only in recent days carried out a massive drone attack on Russian airlines and blew up the Crimean Bridge. The Iranians accelerated the production of enriched uranium, which causes tensions with the Americans. In the US itself, in turn, Donald Trump, who proved to be a geopolitical puzzle. In addition, in the Senate it is considering applying a duty of 500 percent. for countries that buy Russian oil, gasuranium and other export goods. The tension also increases with China, which the US accuse the failure to meet the trade agreement.
Fires limit the market
In addition to the fact that in countries with the largest oil reserves it is very uncertain, the fire has been exploding in Canada for several weeks. Currently, there are over 200 of them. Even worse, they also occur in the Canadian province of Albert, which is a oil basin. Reuters reports that on Monday they had about 7 percent. total oil extraction in the country. It is also known that at least two oil -bearing sand operators evacuated employees from their jobs at the weekend and closed production as part of precautions.
Fight in OPEC
The organization of oil exporting countries (OPEC) also decided to increase oil production in July by over 411,000 barrels a day. The same rules were in force in May and June, and analysts expect a similar step also in August. Interestingly, but during the discussion on this solution The two most powerful OPEC members – Saudi Arabia and Russia. Saudis lobbyed for increasing mining. The Russians were against. Ultimately, however, this country from the Middle East won, but the emotions of sewing the oil market are large.
Read also: Alarm in Europe. Smoke from Canada is heading over our continent. “It shows the scale of fires.”
Sources: ReutersIAR, Bankier.pl, STOOQ.PL, wnp.pl