Crude oil prices closed lower Thursday (Jan. 27) as investors took profits after two strong days. Concerns that the conflict in Ukraine and problems in the Middle East could affect oil supplies continue.
- WTI crude futures were down 74 cents at $86.61 a barrel.
- BRENT crude futures were down 62 cents at $89.34 a barrel.
Goldman Sachs, Morgan Stanley, and JPMorgan predict that oil prices will reach the $100 per barrel mark this year. This is primarily due to the strong market demand.
Concerns about crude supplies due to rising tensions in Ukraine continue to hover over the market. On the Ukrainian side, it is still hoped that Russia will remain on the diplomatic path. This is to remain at least for the next two weeks so before officials from Moscow, Germany, France, and Ukraine want to talk to each other again in Paris. President Biden, meanwhile, has announced that he will hold further talks with Ukrainian President Volodymyr Zelensky today (28 January).
Tensions in the Middle East also do not yet seem to be easing. The Houthi rebels still seem to be targeting UAE oil facilities.
On February 2, OPEC+ will meet again to discuss further production policy. It is expected that the main producer countries will continue to decide on a restrained increase in the number of oil supplies. However, recent data has shown that especially smaller OPEC countries have problems with oil supplies. Thus, the planned production volumes for December 2021 could not be met.
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Friday, January 28, 2022