Geopolitical tensions are building demand for oil

Petroleum it has gone up for the sixth consecutive week, reaching today the level of USD 87 per barrel of the WTI variety. This is the highest price in nearly seven years. The increases are not stopped even by the appreciating US dollar, in which the raw material transactions are settled. Reason? The supply problem still seems to exist in the oil market.

OPEC + dispenses by "drop"

A moderate output growth policy on the part of major producers may keep prices high. OPEC + is scheduled to meet on February 2 and the market expects to stick to the 400 increase in production planned for March. barrels a day.

Fear of what Russia will do

Oil prices have already risen by around 15% since the beginning of the year, as geopolitical tensions in Eastern Europe, in which Russia is involved, the second-largest oil producer and key supplier of natural gas to Europe, and in the Middle East, may have fueled fears of disruptions in deliveries.

An important factor in record inflation

On the demand side, China's crude oil imports may increase by 6-7%. this year. According to the report Reuters buyers will increase purchases for new refining units and replenish low stocks.

Rising oil is one of the key drivers of high global inflation. If raw material prices do not fall, inflation may still break records in the first quarter of this year.