It seems that the price is being corrected after reaching a high of 77.13 on February 9. Reporting from Oilprice, according to StanChart, the global oil surplus we are currently seeing is caused by seasonal weakness in January. StanChart notes that there has been a January inventory draw in just three years since 2004, with the average increase in the first month of the year being 1.2 million barrels per day.
Oil Prices Amid Tensions in the Red Sea
Global geopolitical conflicts can influence oil prices, apart from supply and demand, the role of geopolitics may influence the oil supply chain.
When the Hamas vs Israel war broke out, there was an escalation of the war in the Red Sea which was started by the Houthis who targeted cargo ships linked to Israel.
This condition has led the US to enter the Red Sea to protect security in this area. This could continue into a war involving several countries because the Red Sea and the Suez Canal are international strategic routes that pass through many ships from various countries.
However, oil prices still seem to be far from what some experts predicted, in fact, oil prices tend to be under pressure, which could be caused by the decline in global demand, especially China which is recovering from the Covid pandemic.
Oil Prices Amid Tensions in the Red Sea
Global geopolitical conflicts can influence oil prices, apart from supply and demand, the role of geopolitics may influence the oil supply chain.
When the Hamas vs Israel war broke out, there was an escalation of the war in the Red Sea which was started by the Houthis who targeted cargo ships linked to Israel.
This condition has led the US to enter the Red Sea to protect security in this area. This could continue into a war involving several countries because the Red Sea and the Suez Canal are international strategic routes that pass through many ships from various countries.
However, oil prices still seem to be far from what some experts predicted, in fact, oil prices tend to be under pressure, which could be caused by the decline in global demand, especially China which is recovering from the Covid pandemic.
