The oil prices at the end of last week recorded their highest levels in more than seven years due to the repercussions of the global geopolitical situation, especially in Eastern Europe and the Middle East, and led to fears of a lack of supplies.
Al-Qabas quoting the Kuwait News Agency said also, the price of a barrel of Kuwaiti oil crossed the $90 barrier, at its highest level since October 2014, as it rose $41.1 to $23.91 in trading last Thursday, according to the price announced by the Kuwait Petroleum Corporation.
The benchmark Brent crude futures also rose 69 cents to settle at $90.03 a barrel, and West Texas Intermediate crude futures increased 21 cents and settled at $82.86 a barrel.
Today, Sunday, oil analyst Dr. Khaled Boodai attributed the rise in oil prices to this level to several reasons, most notably the commitment of the (OPEC+) alliance which includes the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing countries, not to pump quantities more than the market needs.
Boodai indicated the alliance’s commitment to pumping a monthly increase of 400,000 barrels per day, balanced supply and demand, and reducing the pressure of surpluses in the oil market on prices.
He said the global economy began to witness a state of recovery with the decline of the Corona pandemic, which increased the demand for oil and the expansion of many economic activities and contributed to the rise in oil prices.
He added that investors returned to the oil market with the pandemic showing signs of receding and speculation increased, which created additional demand that led to an upward movement in prices.
Boodai indicated that the serious trend towards renewable energy made investors in the field of oil exploration and extraction reticent to increase their investments in this field, which reduced the chances of dumping oil markets in the future, and this provided additional support for prices.
He stated that the pressures on countries that use coal as a major source of energy, especially those related to environmental pollution, have strengthened the position of crude oil and gas, as they are among the most important alternatives to coal, so it is not excluded that oil prices will reach $100 per barrel.
Boodai pointed out that oil producers do not want oil prices to reach this level because it encourages production in high-cost areas, thus introducing new producers to the markets, which puts severe pressure on prices.