Oil prices rise due to earthquakes in Turkey
2023.02.07 08:35
Oil prices rise due to earthquakes in Turkey
By Tiffany Smith
Budrigannews.com – On Tuesday, concerns about supply shortages following the closure of a major export terminal as a result of an earthquake in Turkey drove oil prices up for a second session in a row.
At 1042 GMT, futures were up $1.78, or 2.2%, to $82.77, and West Texas Intermediate futures were up $1.74, or 2.4%, to $75.88.
According to ActivTrades analyst Ricardo Evangelista, “the price of the barrel is finding support as the reopening of the Chinese economy, following the end of the zero-COVID policy, is expected to drive a significant increase in demand for crude this year.”
The head of the International Energy Agency (IEA) stated on Sunday that China will account for half of this year’s growth in global oil demand and noted that demand for jet fuel was on the rise.
In anticipation of a recovery in demand, particularly from China, Saudi Arabia, the world’s largest oil exporter, raised the price of its flagship crude for Asian buyers for the first time in six months.
After a significant earthquake struck the area, the 1 million barrels per day (bpd) oil export terminal in Ceyhan, Turkey, ceased operations. Between the 6th and 8th of February, the BTC terminal, which ships Azeri crude oil to international markets, will be closed.
Prices also rose as a result of the Johan Sverdrup oilfield’s 535,000 bpd Phase 1 closure in Norway’s North Sea region.
Analysts stated that the U.S. Federal Reserve’s Jerome Powell speech on Wednesday will be watched by oil markets. The dollar strengthens when interest rates rise, which could make crude more expensive for buyers outside the United States.
Tina Teng, an analyst at CMC Markets, stated, “The rebound in oil prices is more like a cautious move ahead of Fed Powell’s speech tomorrow, when the Fed chairman may provide more clues on the future path of rate hikes.”
(NYSE:) BP on Tuesday, it announced a record profit of $28 billion for 2022 and increased its dividend in a sign of confidence. It also slashed its plans to reduce oil and gas output by 2030 but sharply increased overall spending.
