Crude oil forecast: Geopolitical tensions drive brent towards $95 per barrel in near term
Also Read: Will the rise in crude oil prices impact the markets in the near term? Moreover, the recent surge in geopolitical tensions has further propelled oil prices upward. Notably, Ukraine's launch of drone attacks on Russian oil refineries, including Lukoil Nizhny, Rosneft Ryazan, and Surgut Kirishi, has caused partial shutdowns.
Ukrainian officials have stated their intention to disrupt Russia's revenue-generating oil industry and domestic fuel supplies through these attacks. Additionally, Houthi militants in Yemen continue to target shipping vessels in the Red Sea, despite airstrikes from the US that have resulted in an increase in concerns over more disruptions to supplies from the region.
However, so far, the hit to actual supply from developments in the Middle East has not taken place, which is in turn limiting the degree of upside in brent crude oil prices. Also Read: FPIs pump ₹38,098 crore in Indian equities, debt inflows at ₹13,223 crore; Will the trend continue in FY25? With the exception of the US economy, demand rose across countries, driven by increased mobility in China on the occasion of the Lunar New Year and in Europe.
It says that the demand from India also increased as household consumption remained robust amid cooler weather in the north, while diesel consumption increased in line with the receding winter and increasing mobility. Also Read: Explained | How the Red Sea crisis will impact Indian economy in FY25 On a sequential basis, it pointed out that global supply remained steady, with total production reaching 101.8 million barrels per day (mbpd).
OPEC adhered to its guidance, and non-OPEC production followed a similar trajectory as observed in the previous month. Overall, the surge in demand
. Read more on livemint.com
