Oil prices fluctuated in Asia on Monday as markets expected global supplies to remain tight. In addition, OPEC+ and Ukraine remain in focus.
- Brent crude futures were up 0.31% to $93.56 per barrel.
- WTI crude futures fell 0.17% to $92.15 per barrel.
Both Brent and WTI crude oil futures rose more than $2 last Friday. Given ongoing concerns about supply disruptions, the trend in oil prices remains positive.
OPEC+ had decided last week to maintain the planned production increase of 400,000 barrels per day. The U.S. and other countries have recently put pressure on OPEC+ to increase production even further. With prices continuing to rise, OPEC+ may fear a demand downturn as consumers tend to consume less when prices are high. Accordingly, OPEC+ may soon try to increase production even further.
Tensions in Eastern Europe continue. U.S. National Security Adviser Jake Sullivan warned Sunday that Russia, the world’s second-largest oil exporter, could invade Ukraine within days or weeks. Meanwhile, U.S. President Biden and German Chancellor Scholz are meeting today, where the Ukraine situation will surely be discussed. Meanwhile, French President Macron is on his way to Moscow to talk with Russian President Putin.
The situation certainly worsened last week after the U.S. sent more troops to Europe. In addition, Russia and China have further expanded their partnership to provide a counterforce to the U.S.
The Spot Market is Open
Monday, February 7, 2022