Weeks ago, expectations indicated that Brent crude prices would rise to levels of $100 per barrel.
The reason for expectations of a rise in oil prices was the record increase in demand for fuel, with exporting countries such as Saudi Arabia and Russia tending to reduce production operations, as well as the outbreak of escalation in Gaza, which raised concerns about oil supply, which increased the price of black gold.
However, expectations for a rise in oil prices have differed, as Brent is hovering around levels of $80 per barrel, and fears about the lack of supply have faded with the decline in refinery profits in China and Europe, in addition to weak global trade rates, and a state of uncertainty about the performance of the largest economy in the world. , United States economy.
“The market appears to have shifted from focusing on geopolitical concerns to looking at market fundamentals,” said Norbert Rucker, an analyst at Julius Baer & Co., according to Bloomberg.
He pointed out that prices were affected by an abundant increase in supplies, as well as the increasing growth in oil production, and a stagnation in demand.
He also added that the decline in black gold prices represents a kind of relief for countries like America, politically and economically, as high gasoline prices have put pressure on families and threatened to become a political burden on US President Joe Biden.
It also represents a calm period for central banks like the Federal Reserve, which is seeking to end a long series of interest hikes to curb inflation.
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