In the afternoon of the US session on Thursday, under the influence of many pressured news on the supply side, WTI crude oil futures rose 2.5% to break through the $90 mark, adding another firewood to the extremely anxious global inflation situation.
Although the COVID-19 pandemic is still a bearish factor hanging over crude oil demand, the impact of this wave of TheOmilon virus on major crude oil consumers around the world is gradually decreasing, while the lack of OPEC+ production and the impact of harsh climate on oil production constitute factors supporting the upward trend of crude oil prices.
Giovanni Staunovo, a commodity analyst at UBS, said that as OPEC+ gradually withdraws from the production cut plan, the organization's remaining capacity will fall to a low level in 2022. Assuming that the travel restrictions related to the epidemic are completely lifted next year, it means that the global crude oil demand that continues to expand will also rise further. Compared with UBS, the more direct Goldman Sachs has shouted out the expectation that oil prices will exceed $100 in the third quarter of this year.
It is worth mentioning that while crude oil prices have risen to a new high in the past 7 years, many OPEC countries have not even used the allocated production quota.
According to media reports, Iraq's crude oil production capacity in January was 4.16 million barrels per day, significantly below the production quota of 4.28 million barrels per day. Nigeria, which is also struggling to meet crude oil production quotas, has also recently suffered an oil production ship explosion.
As a hope for an increase in crude oil market production, the United States is currently experiencing severe cold weather across the northeast and central regions, and it is more likely to appear as a negative factor on the supply side, at least in the short term.
(Source: Financial Associated Press)
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