Monday, March 4

Brent oil hits a new supply cut record and trades above $88

According to experts, this increase responds in part to the cut of an oil pipeline that goes from Iraq to Turkey, which has caused concern in a market that still has problems with the supply of black gold. The outage was due to a fire in the Kirkuk-Ceyhan pipeline, which carries oil from Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC), to the Turkish port of Ceyhan for export.

This situation adds to the forecast of the experts that the supply will not be able to cover the demand for crude oil in 2022 when the global economies are reactivated after the impact of omicron. In addition, the possibility of a Russian military incursion into Ukraine, which could affect the balance of the world energy market, is also attracting investors’ attention.

On the other hand, Oil supply will soon outstrip demand as some producers are set to pump at or above record highs, the International Energy Agency said on Wednesday. (IEA), while consumption will remain despite the spread of the omicron variant. “This time, the increase in cases is having a more moderate impact on the use of oil,” the Paris-based IEA said in its monthly report on the oil market.

“The steady increase in supply could see a significant surplus materialize in the first half of 2022 and beyond,” he said, with the United States, Canada and Brazil set to pump into all-time highs for the year, while Saudi Arabia and Russia could also exceed their production records.

The moderate lockdown measures will mean mobility will remain robust, the IEA added, prompting the energy regulator to raise its oil demand estimate for last year and by 200,000 barrels per day (bpd) for 2022.

But the IEA warned that With commercial oil and fuel stocks in OECD countries at their lowest levels in seven years, any reduction in supply could make the oil market volatile in 2022.