Oil prices hits 7-year high on political fears, supply shortages

yousef28 January 2022Last Update : 2 years ago
Oil prices hits 7-year high on political fears, supply shortages

Oil prices rose on Friday to their highest levels in more than seven years as ongoing global political turmoil raised concerns about supply shortages.

Oil were on track for gains for the sixth consecutive week, the longest streak of weekly gains since October.

Brent crude futures, the benchmark, rose 69 cents, or 0.77 percent, to settle at $90.03 a barrel. In the session, it reached $91.70, its highest level since October 2014.

West Texas Intermediate crude futures rose 21 cents, or 0.24 percent, and settled at $86.82 a barrel. It reached its highest level in more than seven years at $88.84.

The major producers in the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia in what is known as (OPEC +), are seeking to raise their production levels. The market was also affected by the attacks launched by the Yemeni Houthi movement on the United Arab Emirates.

And fueled oil prices, fears of a possible military conflict in Ukraine, which would cause turmoil in energy markets, especially natural gas supplies to Europe.

The Iraqi News Agency, quoting a statement of the Oil Ministry, said on Friday that the agreement with the French company Total (PA:TTEF) will enter into force in the first quarter of 2022.

Total will build four mega-energy projects in southern Iraq under a $27 billion agreement signed in Baghdad in September

Gold continues to decline, despite the resistance that appeared after falling below $1800 an ounce, to return for a moment at $1803 and then fall back to $1793 an ounce now, down by 1.43%.

This comes the day after the Federal Reserve’s decision to keep interest rates at 0% – 0.25%, and Jerome Powell, President of the US Federal Reserve, spoke in a press conference after the release of the data, in which Powell showed a tough tone and favored raising interest rates in the month of March, which hurt With gold and giving the dollar additional strength, Powell also emphasized the strength, stability and positivity of the American economy, which made eyes focus on the US GDP today, whose expectations came at an increase of 5.5%, but it exceeded it and recorded an increase of 6.9%.

However, the new news is what was published by Reuters hours ago that gold contracts will end this year with an average performance of $1775.5 an ounce, and will trade in 2023 at an average of $1,653 an ounce, a sharp drop that experts at Reuters expect in a recent poll.

They also saw silver at levels of $22.96 this year and down to $21.8 in 2023.


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