Tight supplies, falling inventories, rising demand from China, and the US summer driving season will continue to keep the crude oil prices on the higher side. So will the sanctions on Russia.
It’s the fourth straight day that crude oil price is holding above USD 120 per barrel. The 14-year high for the NYMEX crude is USD 126 per barrel which was hit in the month of March.
Brent crude futures for August rose 22 cents, or 0.2 percent, to $120.79 a barrel by 0012 GMT after closing at the highest since May 31 on Tuesday.
US West Texas Intermediate crude for July was at $119.65 a barrel, up 24 cents, or 0.2 percent, after reaching its highest settlement since March 8 on Tuesday.
According to JPMorgan, Russia has cut 500,000 to 700,000 barrels per day already. The rest of the numbers are not clear but expect tighter supplies. And even at these levels there is yet demand for destruction to come in that has not been seen either in Asia, the US or Europe. So this suggests that the prices are holding higher.
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