- Brent crude futures rose 0.36% to $82.64 per barrel, and West Texas Intermediate crude futures rose 0.34% to $77.3.
- Brent and WTI contracts fell significantly on Tuesday, with a notable increase in the premium for US crude futures.
- Russia is sticking to its OPEC+ quota despite a 7% drop in oil refining due to Ukrainian drone attacks.
Oil markets saw a slight rebound in Asian trade, with Brent crude futures rising 30 cents, or 0.36%, to $82.64 a barrel, and US West Texas Intermediate crude futures rising 26 cents, or 0.34%, to $77.30. This rebound comes after declines from the highest levels in almost three weeks, highlighting the volatile nature of global oil markets.
Crude Oil Futures Turnaround: Stability Amid $6-7 Risk Premium
Market dynamics on Tuesday indicated a shift as the premium for US spot crude futures rose compared to the second-month contract, encouraging spot sales rather than storage. However, this premium decreased significantly the next day, indicating a rapidly changing trading environment. Renowned oil market analyst Vandana Hari noted that crude oil futures have entered a relatively stable phase. Current prices include a risk premium of between $6 and $7 per barrel. According to Harry, the market direction may depend on developments in the Gaza crisis. Possible outcomes include either a ceasefire or further escalation. These developments may affect prices.
Russia's commitment to OPEC+: remains stable despite a 7% decrease in refining
Internationally, Russia's commitment to its OPEC+ quota amid a 7% decline in oil refining is noteworthy. Despite the challenges, including damage to infrastructure caused by Ukrainian drone attacks, Russia has pledged to continue the agreed production cuts. This decision highlights the complex interplay between geopolitical events and oil production, affecting global supply and prices.
The global oil market remains subject to various influences, ranging from geopolitical tensions to trade strategies and international agreements. With analysts pointing to a period of price stability, albeit with built-in risk premiums, traders and consumers alike are closely watching developments that could influence the market in either direction.
