Oil prices up

14 May 2024 , 09:19 AM

Tuesday saw an increase in oil prices as it appeared that  increased demand and voluntary output reductions would tighten the supply-demand balance. U.S. West Texas Intermediate crude futures increased by 18 cents to $79.30 per barrel. Futures for Brent crude increased by 19 cents to $83.55 a barrel.

Firefighters in British Columbia and in Alberta, close to the centre of the nation’s oil sands industry, were battling to put out two wildfires on Monday as the country’s wildfire season got underway. There have been no reported disruptions to operations.

The prior trading session saw oil prices close to 1% higher due to stronger demand from China and the United States.

The American drivers’ association AAA predicts that Labour Day road excursions during the long weekend of May 25–27 will reach their highest point since 2000. Meanwhile, data from China over the weekend revealed that consumer prices increased for the third consecutive month.

Additionally, the market kept responding to optimistic remarks made over the weekend by Iraq’s oil minister, Hayyan Abdul Ghani.

At its upcoming meeting on June 1, Ghani stated on Sunday that Iraq would respect the voluntary output cutbacks imposed by OPEC+, which is made up of Russia, the Organisation of the Petroleum Exporting Countries, and other non-OPEC producers.

That was a 180-degree turn from his remarks on Saturday that Iraq would not accept any more output cutbacks and that it had already made enough voluntary reductions.

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