Crude Oil Update
Today’s crude oil’s price is at $75.11 currently (11am EST). Comparing to this month or even this year, we can find the price of code oil fell a lot. The highest point was over $120 in last June, then it kept falling. The crude oil’s price almost the lowest recently.
On a global scale, China’s reopening means a lot for global economics. Not only for crude oil but also for the whole markets. But due to the Chinese New Year, people can’t know the specific demand of the oil right now. But with everything coming back to normal life, we will see the huge demand of Chinese market. And Saudi Arabia lifted most for oils which will be shipped to China. That’s means Chinese demand of crude oil is over the supply Arabia predicted.
A major earthquake halted operations at Turkey’s oil terminal in Ceyhan and flows through Iraq’s northern oil export pipeline from Kirkuk. But Turkish pipeline operator BOTAS said there was no damage on main pipelines carrying oil from Iraq and Azerbaijan to Turkey. Although it will stop export for a few days, it shouldn’t have a major impact on price long term.
And European Union imposed ban on Russian refined energy products. G-7 set a price cap $100 on so-called “high-value” Russian exports such as diesel and gasoline and $45 on “lower-value” products such as fuel oil. “It is unlikely that the caps will have a material impact on global supply.” said Troy Vincent, senior market analyst at DTN.
To conclude, it seems likely crude oil prices will increase in 2023; as the increasing demand from China. And the supply would be stable. I also find the gasoline’s price was around $4.0/Galon at last summer in Oklahoma, it fell to $3.6/Galon last winter, but recently it goes up to $3.8/gallon.
Written by Yitong Su
