WTI oil opens with a decrease of 0.26%, at $81.05 per barrel.

Texas crude started the week at $77.44 per barrel and yesterday, at its highest point, reached $81.54.

Ignacio Teson•Friday, March 15, 2024•1 min read

…Although it is on track to close the week significantly higher.

Futures contracts for WTI for April delivery were down 21 cents from the previous session’s close.

Yesterday, the International Energy Agency (IEA) revised upwards its forecast for global oil demand this year. Taking into account production cuts announced by key members of the OPEC+ cartel, it believes the market could be in a “slight deficit” situation.

According to CNBC, this forecast aligns with projections from OPEC itself and solidifies the notion of weaker supply.

In addition to this, attacks this week launched by Ukraine against Russian oil facilities further support the idea of potential supply difficulties from Russia.

Texas crude started the week at $77.44 per barrel and yesterday, at its highest point, reached $81.54.

Ukraine attacked a Russian oil refinery in the Kaluga region with drones early on Friday. Vladislav Shapsha, governor of the Kaluga region, previously stated on the Telegram messaging service that air defenses had shot down four drones in the area where the refinery is located, and that there were no damages to the infrastructure or casualties.

Ukraine has escalated attacks against Russian oil infrastructure since the beginning of the year, targeting numerous large refineries in an attempt to disrupt Russian military forces and halt the advances of its army.

The attacks and the resulting reduction in refining capacity have driven up global oil prices. Russia has stated that it is likely to increase the country’s crude exports due to unforeseen maintenance at refineries.

The Volgograd refinery, owned by Lukoil and located in southern Russia, was hit by an airstrike last month. The NORSI refinery, controlled by Lukoil, was targeted by a drone this week. It had already experienced technical disruptions in January.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.