During the beginning of the European afternoon on Friday, September 15, 2023, oil prices on the global commodity market exceeded their price threshold above USD 90 per barrel, both for the monitored benchmarks, both for light American WTI (West Texas Intermediate) oil and for North Sea crude oil of Brent oil. According to economic reporters, following the analysts of brokerage companies and especially with regard to the financial strategists of the commodity market, it is quite clear that the so-called oil rally is already in full swing and we can therefore expect a return of the price of oil to around USD 100 per barrel.
Currently, during the afternoon in Europe on Friday 15/09/2023, at approximately 13:22 CET, the US light oil WTI (West Texas Intermediate) was trading on the NYMEX (New York Mercantile Exchange) commodity market at a value of USD 90.54 per barrel with by + 0.42% of its price on the previous day. According to technical analysis data, this price thus represents a total annual growth of +18.03% of its price over the last 52 weeks, with the fact that since the beginning of this year 2023 the price has increased by +15.43% of its price compared to the price at the end of last year 2022. The European counterpart of WTI oil, namely Brent North Sea oil, was also trading in the trading trend of the previous bull market on the indicated day and time on the ICE (Intercontinental Exchange Europe) commodity market, at a value of USD 94.02 per barrel with daily growth to date by + 0.34% of its price. This Brent crude oil price represents an annual increase of +12.04% in price and has increased by +14.6% in its price since the beginning of this year.
Indeed, some brokerage firm analysts and investment bank financial strategists believe that oil prices could reach the $100 per barrel milestone before the end of this year, 2023. Both Brent and WTI crude oil have already settled on Thursday, September 14, 2023 their highest levels this year. Oil contracts are significantly higher month-to-date and remain firmly on track for a third consecutive positive week. The rise in prices comes amid growing expectations of tighter supply after Saudi Arabia and Russia moved to reduce global inventories and extend oil production cuts until the end of this year 2023. that it will extend crude oil production cuts by 1 million barrels per day until the end of 2023, while Russia, which is not the leader of OPEC but a major ally in the OPEC+ group, has pledged to cut oil exports by 300,000 barrels per day, also by the end of the year 2023. Both countries said they would review their voluntary cuts every month.
Not only based on this, Bank of America analysts indicated that they now believe that oil prices could soon climb above triple digits. “If OPEC+ maintains continued supply cuts until the end of the year on the back of positive demand in Asia, we now believe Brent prices could climb above $100/bbl by 2024,” BoA analysts led by Mr Francisco Blanch said in a research note. The International Energy Agency (IEA) already warned on Wednesday, September 13, 2023, that Saudi Arabia and Russia’s production cuts are likely to lead to a “significant market deficit” in the fourth quarter of this year 2023. The world’s leading energy agency said in its monthly oil report that production cuts by OPEC and non-OPEC+ allies of more than 2.5 million barrels per day since the start of the year have so far been offset by non-OPEC and OPEC+ members – such as the US. and Brazil. Mr. Christyan Malek, global head of energy strategy and head of EMEA oil and gas equity research at JPMorgan, shared his prediction that oil prices are likely to trade between $80 and $100 per barrel in the short term and more likely around $80 per barrel as a longer-term price with market support.