Brent Hits $123.75 after UAE Warns of Price Increase
Crude oil prices remained on an upward trajectory after the United Arab Emirates oil minister warned that China’s reopening and the inability of members of the Organization of the Petroleum Exporting Countries and allied (OPEC+) producers to reach output targets would cause prices to rise higher, OANDA analyst Jeffrey Halley said in a Thursday note.
Brent added 2.40% to $123.75 a barrel, while WTI rallied by 2.25% to $122.45. Reuters reported that Minister Suhail al-Mazrouei also said the OPEC+ shortfall to target was 2.6 million barrels, with OPEC+ compliance at 200%, Halley said. T
he minister noted that the world is nowhere near peak oil prices. READ: Oil Slides as IMF Cuts Growth Expectation in China
Meanwhile, US crude inventories unexpectedly gained 2.0 million barrels and distillates jumped 2.5 million barrels, but gasoline stocks remained flat, keeping up the refining product squeeze in the US, Halley noted. The reentry of Iranian crude to international markets also appears unlikely amid difficulties monitoring the country’s nuclear compliance, the analyst said.
Shanghai’s Minhang district went into lockdown, sparking market new worries about China’s zero-COVID policy, and crimping demand in Asia. However, the tight market supply kept oil prices from retreating on the news, Halley said. #Brent Hits $123.75 after UAE Warns of Price Increase
