International crude oil prices rose sharply on Tuesday.
Early this morning, the U.S. Energy Information Administration (EIA) released its monthly oil inventory report. EIA raised its 2022 New York crude oil price forecast by nearly $5/barrel, with WTI crude oil prices expected to be $71.32/barrel, previously expected to be $66.42/barrel; Brent crude oil prices expected to be $74.95/barrel, previously expected to be $70.05 /barrel; NYMEX gasoline price is expected to be $3.06/gallon, previously expected to be $2.88/gallon; NYMEX diesel price is expected to be $3.22/gallon, previously expected to be $3.19/gallon; NYMEX natural gas price is expected to be $12.88/thousand cubic feet , previously expected to be 12.93 US dollars/thousand cubic feet; electricity prices are expected to be 14.22 cents/kWh, previously expected to be 14.29 cents/kWh.
According to Bloomberg, the diesel market in Europe and the United States is currently one of the strongest areas for petroleum products. Profits from converting crude oil into fuel in the two regions reached their highest levels since October 2021 as winter demand picked up, and these profits have remained relatively strong in the face of the accelerating spread of the Omicron virus.
In addition, the rise in international crude oil prices is also related to supply disruptions in Libya and Kazakhstan and the decline in U.S. crude oil inventories.
According to Reuters analysis, as of January 9, Kazakhstan’s daily oil production fell by 3.7% compared with January 4, as previous protests in Kazakhstan disrupted railway operations and hit production at the country’s largest oil field, Tengiz; Pipeline maintenance in Libya has reduced production to 729,000 barrels per day from last year’s high of 1.3 million barrels per day.
In addition, the Biden administration has signaled that it will reduce national oil reserves, reduce oil development in Alaska, and restore restrictions on drilling.
As of early morning closing this morning, WTI February crude oil futures closed up $2.99, or 3.82%, at $81.22/barrel; Brent March crude oil futures closed up $2.85, or 3.52%, at $83.72/barrel.
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