Oil price rally continues

After a few sessions of selling off, to the price level below 100 USD/barrel, from March 17 to now, the world crude oil price has continuously increased. Currently, the price of Brent crude oil has moved very close to the level of 110 USD/barrel.

Specifically, according to data from Oilprice, at 10:03′ today (March 19, Vietnam time), the price of Brent crude oil for May delivery was trading at 107.9 USD/barrel, up 1.29 USD, equivalent to 1.21% compared to yesterday. At the same time, the price of US light sweet crude oil (WTI) for April delivery traded at 104.7 USD/barrel, up 1.72 USD, or 1.67% compared to yesterday.

According to analysts, world oil prices rose again after the International Energy Agency (IEA) released an oil market report warning that in the coming time, the world may fall into the biggest supply crisis. for many decades. Starting in April, the market could lose 3 million barrels of crude and refined products from Russia due to Western sanctions and countries shunning Russian oil, the IEA said.

Experts say that the rise in oil prices is not over yet. (Photo: Reuters

Financial expert Edward Moya said that the downward correction in crude oil prices seems to have ended. Crude oil prices may continue to soar if negotiations between Russia and Ukraine do not make much progress.

Previously, experts said that oil prices will be adjusted down when consumption decreases because of high prices. Notably, the continuation of strict anti-epidemic measures in China because of the outbreak of Omicron may reduce global energy demand as China is an importer of oil, liquefied natural gas. and the largest coal in the world.

However, according to Craig Erlam, a financial expert at UK & EMEA OANDA (based in the UK), the drop in demand has not kept up with the supply gap, leaving the oil market still unbalanced. That causes oil prices to continue to soar.

Many hope that OPEC (Organization of the Petroleum Exporting Countries) will increase oil supply to 400,000 bpd to ease the energy crisis.

But recently, OPEC + (OPEC and its allies) rejected calls to increase supply from the US and other oil consuming countries.

OPEC Secretary General Mohammed Barkindo said that oil supply is decreasing compared to demand.

Experts say that, oil prices could not cool down quickly as tensions between Russia and Ukraine continued.

Mr. John Driscoll, Director of JTD Energy Services, recently warned that due to the lack of physical oil supply, the price of oil could exceed 120 USD/barrel, even a price of 150 USD/barrel is entirely possible.

JP Morgan also forecasts that oil prices are likely to exceed $125/barrel due to a lack of supply.

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