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Oil Price Increase Due to Concerns Over Saudi Arabian Prices Drives 2% Rise in Oil Market.

Written by Paulo Nogueira

Published on 09/01/2024 at 18:09

Oil and Gas

REUTERS/Nick Oxford/Arquivo – Todos os direitos: CNN Brasil

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Country Reduced Barrel for 27 Months, Recognized OPEP+ and Official Prices. Oil Market, Chinese Demand and Global Stocks Influence.

Oil prices fluctuated throughout this week, with highs and lows reflecting the instability of the international market. Saudi Arabia is increasingly worried about this situation, which may directly influence the oil contracts in the futures markets.

The WTI and Brent crude oils, considered commodities of great importance for the global economy, have seen a significant increase in their values, demonstrating the volatility of crude oil at the moment. These variations can have significant impacts on various sectors of the global economy.

Oil Market Stability and Saudi Efforts

This Tuesday, news emerged that Saudi Arabia — which announced the reduction of its official prices for its oil barrel to various regions for 27 months — recognized the efforts of the members of the Organization of the Petroleum Exporting Countries and allies (OPEP+) to maintain market stability of the commodity, through the signing of the ‘Declaration of Cooperation’, illustrating Saudi Arabia’s clear willingness to support stable prices.

ARTICLE CONTINUES BELOW

Conflicts in the Middle East and Tensions in the Red Sea

Meanwhile, the escalation of conflicts in the Middle East has taken a back seat this week, with few updates on the progress of tensions in the Red Sea.

Conflict and Effects on Raw Material Prices

According to the World Bank, the effects of the conflict on raw material prices are being ‘well mitigated’ so far, although historically an escalation could severely affect the supply of the commodity, especially if major players in the sector become involved.

Fall in Prices and Concerns about Supply Disruption

For City Index, despite the recent drop in prices and the possible weakness in Chinese and global demand, the drop in prices should be limited by the ‘ongoing concerns’ about the potential supply disruption of oil coming from the Middle East.

Brent Price Forecast and Increase in Global Stocks

Alongside Tuesday’s scenario, the U.S. Department of Energy (DoE) reduced its Brent price forecast for 2024 for the second consecutive month, now expecting the barrel to end this year at US$ 82, and to close 2025 at US$ 79. In the document released this Tuesday, the DoE warns of an increase in global oil stocks during the last quarter of 2023, indicating a well-supplied market.

Source: CNN Brasil

Oil Price Increase Due to Concerns Over Saudi Arabian Prices Drives 2% Rise in Oil Market.

Country Reduced Barrel for 27 Months, Recognized OPEP+ and Official Prices. Oil Market, Chinese Demand and Global Stocks Influence.

Oil Market Stability and Saudi Efforts

Conflicts in the Middle East and Tensions in the Red Sea

Conflict and Effects on Raw Material Prices

Fall in Prices and Concerns about Supply Disruption

Brent Price Forecast and Increase in Global Stocks

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Oil Price Increase Due to Concerns Over Saudi Arabian Prices Drives 2% Rise in Oil Market.

Country Reduced Barrel for 27 Months, Recognized OPEP+ and Official Prices. Oil Market, Chinese Demand and Global Stocks Influence.

Oil Market Stability and Saudi Efforts

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Conflict and Effects on Raw Material Prices

Fall in Prices and Concerns about Supply Disruption

Brent Price Forecast and Increase in Global Stocks

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Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

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A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Spain installs two giant pipelines 2.2 km off the coast to draw water from the Mediterranean and supply a megafacility capable of producing 200 million liters of drinking water per day.

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