Oil prices rise 1.5% after sharp declines

Oil prices rebounded on Wednesday, rising more than 1.5%, after four consecutive days of strong winds that had pushed prices to their lowest levels since February 2021.

Current customer activity

Brent crude: Up to $60

West Texas Intermediate: Approximately $56.50

Why oil prices are rising

This is due to several key factors:

1. US escalation

The US president ordered a total ban on all oil tankers that fail to report to or leave Venezuela, exacerbating the region's power outages.

2. Impact on Venezuelan banks

These oil measures and procedures are estimated to affect approximately 590,000 tankers per day, most of which are destined for China.

3. Recent US statements

The White House suggested allowing more oil tankers to remain off the Venezuelan coast.

Factors Affecting Global Oil Markets

- Oil Interest Rate Forecasts

According to an ING Bank analyst:

• Oil interest rates will reach the first stage by 2026.

• Consequently, inventories will freeze in 2026.

• Increased pressure on oil prices due to oversupply.

- Impact of the Russian-Ukrainian War

• Any progress in peace talks could lead to a Russian oil-related impact.

• Increased oil supply in the global market.

• The market is experiencing difficulties finding buyers for crude oil despite its instability.

- Oil Price Performance

Oil prices have fallen by more than 20% since the beginning of the current period, influenced by several factors, including rapid and unexpected global oil forecasts and geopolitical developments.

Ultimately, this could lead to increased interest in or greater US focus on Russian oil companies, further increasing supply in an already oversupplied market.

Russian patents in the sea have maintained their stability since the Technical Work Administration was officially imposed on Rosneft and Lukoil, but part of this crude oil is having difficulty finding buyers, leaving a growing amount of Russian oil at sea.