Apr 24, 2024 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) This week, oil markets displayed notable resilience, with prices climbing over 1% despite fluctuating geopolitical tensions.
On Tuesday, West Texas Intermediate (WTI) for June delivery surged by 1.78%, closing at $83.36 per barrel at the New York Mercantile Exchange.
Concurrently, Brent crude for July ascended by 1.53%, reaching $87.39 per barrel at the Intercontinental Exchange.
This upturn in prices marks a robust recovery from Monday's downturn, with analysts attributing the bounce back to seasonal factors that traditionally boost global demand.
Additionally, easing tensions in the Middle East earlier influenced a price dip, yet this effect was short-lived.
Financial analysts, especially from BOC Financial, noted investor focus shifting towards strong seasonal demand and key production metrics globally.
Reinforcing this sentiment, Spartan Capital pointed to strong Purchasing Managers' Index (PMI) data from Europe, which suggests heightened demand expectations.
Moreover, Lombard Odier provided insights into the broader market dynamics.
They noted that despite the relative calm in Middle Eastern geopolitics, ongoing global demand increases.
Additionally, supply disruptions from Russia and production cuts by OPEC and its allies are likely to sustain oil prices within the higher $80 to $90 per barrel range.
They also suggested that OPEC might leverage its considerable spare capacity to counter any major supply disruptions and stabilize the market.
Impact of New U.S. Sanctions on Iran
Commerzbank raised concerns about new U.S. sanctions on Iran , which could further tighten the market by limiting Iran's export capabilities.
These sanctions are especially expected to affect oil logistics to major destinations like China.
This complex interplay of supply adjustments, geopolitical shifts, and robust demand underlines the intricate dynamics governing global oil markets.
It showcases a delicate balance that could influence future pricing and market stability.
These elements together forecast a period of sustained vigilance and potential volatility as market participants navigate through these evolving challenges.
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COMTEX_451354968/2604/2024-04-24T14:47:24
