The price of Brent will rise in the short term, reaching up to 90 dollars per barrel if China recovers and the actions taken by the President of the United States Federal Reserve, Jerome Powell, prevent a recession in the United States.

The general director of the strategic consultancy Tempos Energía, Antonio Aceituno, explained that, since the beginning of last May, the prices of a barrel of Brent have entered “a micro tunnel”, stabilizing around the level of 75.50 dollars per barrel and drawing small oscillations of 2.5 dollars, both below and above.

“The price of a barrel of European oil is completely subject to the prospects of the world economy and, therefore, it could rise in the short term and be in the Saudi compliance zone,” he warned.

“If China manages to surprise the world and the US avoids a recession, prices will stabilize at around $80-$90 a barrel“. Otherwise, “they will fall precisely between 70 and 80 dollars per barrel, which would give rise to waiting for a new action by the main player in the crude oil market”, Saudi Arabia,” said Aceituno.

The “surprising and apparently decisive” cuts announced in April by OPEC+ were “volatized” in a matter of weeks, “along with Russia’s reluctance to exit the markets even after the nation itself announced a reduction in its production” said Oliver. Russian flows have increased by eight percent since February to stand at around the level of 3.6 million barrels of Brent.

K. Tovar

Source: WorldEnergyTrade

(Reference image source: Arvind Vallabh, Unsplash)

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