Emmanuel OchayiCrude oil prices have undergone significant fluctuations in the international market over the past week.
From a recent high of $87.61, the price of Brent Crude has dipped to $85.61 as of Friday, March 22, 2024. Similarly, the WTI Crude has fallen to $80.88 from a peak of $83.77 in the preceding days, according to Oilprice.com.
The recent drop in prices contrasts with a previous surge attributed to attacks on Russian refineries by Ukrainian fighters. Just days ago, Brent Crude soared to $86.87, while WTI crude reached $81.77 per barrel. The Murban crude also experienced an increase, rising to $86.90 from $82.78.
However, the downward trend witnessed in crude oil prices has been attributed to various factors. Weaker United States gasoline demand data and reports of a United Nations draft resolution calling for a ceasefire in Gaza have exerted pressure on oil prices.
READ ALSO: Crude Oil Prices Surge To $86 Amidst Ukraine’s Attacks On Russian Refineries
The decline in gasoline demand is evident from the fall in gasoline inventories for a seventh consecutive week, coupled with a slip in gasoline product supplied.
Additionally, confirmation of a US-drafted United Nations resolution seeking a ceasefire has further impacted market sentiment.
Speaking on the matter, an industry expert stated, “The recent fluctuations in crude oil prices reflect the ongoing geopolitical tensions and their impact on market dynamics. While attacks on Russian refineries initially drove prices up, concerns over demand and geopolitical developments have contributed to the recent decline.”
The global oil market remains sensitive to developments in conflict zones and shifts in demand patterns. Analysts suggest that continued monitoring of geopolitical developments and their implications for supply and demand dynamics will be crucial in understanding future price movements.
As tensions persist and market conditions evolve, stakeholders in the energy sector are bracing for further uncertainty in crude oil prices. Amidst these fluctuations, attention remains focused on developments both in conflict regions and key consumer markets, shaping the trajectory of crude oil prices in the coming days.
