Oil prices are on track for their seventh straight weekly gain
Oil prices are on track for their seventh straight weekly
gain, the longest such streak since 2022. This is being driven by a number of
factors, including:
The International Energy Agency (IEA) has forecast that global oil demand will hit a record 103 million barrels per day in August. This is being driven by strong economic growth in the United States and China, as well as the reopening of economies around the world.
OPEC+, the group of oil-producing countries that includes
Saudi Arabia and Russia, has agreed to keep production levels steady in recent
months. This has helped to tighten global oil supplies and support prices.
The ongoing war in Ukraine is also contributing to higher
oil prices. The war has disrupted Russian oil exports, which has tightened
global supplies even further.
OPEC's point of view on the current oil market is that it is
balanced. The group has said that it is committed to ensuring that the market
is well-supplied, but it has also warned that it will not overproduce in order
to drive down prices. OPEC is also concerned about the impact of high oil
prices on the global economy.
It is too early to say whether oil prices will continue to rise in the coming weeks and months. However, the current factors that are driving prices higher are likely to remain in place for at least the near future. This suggests that oil prices could remain elevated for some time.
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