Oil rates register four-month high
Date
3/26/2024 4:06:14 AM
(MENAFN) crude oil prices skyrocketed to USD86 per barrel on Monday, reaching a four-month peak, driven by a combination of factors including robust economic data from China and drone attacks on Russian oil refineries by Ukraine. Global benchmark brent futures have surged by 4 percent since last week, trading at USD86 per barrel, while the United States benchmark West Texas Intermediate climbed above USD81.
Analysts attribute the surge in oil prices to China's macroeconomic data surpassing expectations, instilling optimism about Beijing's economic outlook. Rolf Habben Jansen, CEO of Hapag-Lloyd, noted that despite China's gradual recovery and ongoing disruptions in commercial shipping through the Red Sea, prospects for global trade have improved. Jansen highlighted the depletion of inventories in many cases and the positive recovery following the Chinese New Year.
Geopolitical tensions further contributed to the spike in oil prices, with recent Ukrainian drone strikes targeting Russian oil refineries exacerbating concerns. These strikes, occurring over the weekend, targeted several refineries in Russia's Samara region, located more than 1,000 kilometers from the Ukrainian border. A processing unit at Rosneft's refinery in Syzran caught fire as a result of the attack, with the plant having an annual capacity of 8.5 million barrels or approximately 170,000 barrels per day. Additionally, an attempted strike on a refinery in Novokuibyshevsk was intercepted.
Furthermore, another drone attack targeted the Slavyansk-on-Kuban oil refinery in Russia's southern Krasnodar Region, although no casualties or injuries were reported. These events have heightened geopolitical risks, leading to increased volatility in crude oil markets.
MENAFN26032024000045015687ID1108021329
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.