Next week, the barrel price of North Sea reference Brent oil will be 90-95 dollars, and jumps in its value up to 100 dollars are not ruled out. This forecast was given to socialbites.ca by Igor Galaktionov, stock market expert of BCS World of Investments.
“Oil prices may find a reasonable range around $90-95 per barrel. At the same time, any force majeure in mining operations could cause fluctuations, as price quotes are very sensitive to disruptions on the supply side. “It is especially possible to temporarily reach $100 per barrel,” he said.
According to Galaktionov, force majeure events occur regularly at mining facilities. The expert said these could be strikes in Norway, military interventions in Libya, attacks on tankers in the Persian Gulf, hurricanes in the Gulf of Mexico.
“All these are temporary difficulties, but now the market is particularly sensitive to such events. If this happens, prices could be above $100 per barrel of Brent in the short term,” Galaktionov noted.
As of 19:00 Moscow time on Friday, the price of a barrel of Brent traded on the London ICE exchange was $ 94.04 (plus 0.77% compared to the opening).
Russia is generating more revenue from oil sales in the face of rising natural fuel prices. Russia in August 2023, according to the International Energy Agency acquired Crude oil exports increased by $1.8 billion or 11.8% compared to July, reaching $17.1 billion. This is the highest since October 2022 and the highest in recent months. Although exports of oil and petroleum products decreased by 150 thousand barrels per day to 7.2 million barrels, prices compensated for this. The average price of Russian Ural oil in August was $70 per barrel and reached $75 per barrel in early September. This happened against the background of a decrease in Russia’s production and exports, as well as similar actions by Saudi Arabia. The Urals discount to the Brent marker is approximately $15 per barrel, which is below the end-2022 level of $30-40 per barrel.
Previously in Russia appreciated Urals oil exceeded the ceiling price of $60 per barrel.