Singapore: Oil Prices Surge Amid Geopolitical Tensions
Oil prices continued their upward trend on Friday, marking a second consecutive week of gains. The surge is fueled by geopolitical tensions in Europe and the Middle East, concerns over tightening supply, and optimism surrounding global fuel demand growth as economies recover, as reported by Reuters.
Brent Crude Hits $91.24 a Barrel
Brent crude saw an increase of 59 cents, or 0.7 percent, reaching $91.24 a barrel by 9:46 a.m. Saudi time. Meanwhile, US West Texas Intermediate crude climbed to $87.02 a barrel, up 43 cents, or 0.5 percent. Both benchmarks settled at their highest levels since October on Thursday.
ANZ Analysts Bullish on Oil Prices
ANZ analysts Daniel Hynes and Soni Kumari expressed optimism about oil prices, stating that they are poised for further gains in the short term. The bank raised its three-month price target for Brent to $95 a barrel, citing a positive economic backdrop, supply tightness, and rising geopolitical risks.
OPEC+ Maintains Oil Supply Policy
OPEC and its allies, including Russia (OPEC+), opted to keep their oil supply policy unchanged this week. They also urged certain countries to improve compliance with output cuts. The ANZ analysts anticipate a decline in output in the second quarter due to increased adherence to quotas.
Global Oil Demand on the Rise
JPMorgan analysts highlighted solid global oil demand growth of 1.4 million barrels per day in the first quarter. They mentioned that high-frequency demand indicators suggest total oil consumption in March averaged 101.2 million bpd, exceeding published estimates by 100,000 bpd.
Market Awaits US Employment Report
Investors are eagerly awaiting the US March employment report for further insights into the health of the US economy and the potential direction of monetary policy. The report, due later on Friday, could impact oil prices and market sentiment.