Rising crude oil prices follow terrorist attack in Russia and market optimism
Crude oil prices in the New York fuel exchange are rising in response to a terrorist attack in Russia. Brokers warn of "lurking disruptions in raw material supplies".
25 March 2024 17:23
A barrel of West Texas Intermediate crude on NYMEX in New York is trading at roughly £58. A 0.52 percent increase has been noted. Brent crude on ICE now costs about £62 a barrel.
Russia's Investigative Committee announced on Sunday that the death toll from Friday's terrorist attack on the Crocus City Hall concert venue in Krasnogorsk, just outside Moscow, had risen to 137. Previously, 133 fatalities were reported, with 180 people injured.
On Friday, terrorists attacked the Crocus City Hall concert venue in the suburban area of Krasnogorsk. The audience was fired upon, and explosive devices detonated. A fire broke out, causing the roof of the building to collapse.
The Islamic State claimed responsibility for the attack, but Russian President Vladimir Putin has suggested Ukraine's involvement in the event.
China's government announces support for the economy
Market players are meanwhile assessing comments coming from China, where Premier Li Qiang announced that the authorities in Beijing will increase support for the economy to stimulate stronger growth, which would improve demand for raw materials, including crude oil.
"Currently, the oil markets supply and demand for the commodity seem to be balanced, with Saudi Arabia among others having spare production capacity, but on the other hand, possible disruptions in oil supply lurk around the corner," assesses Stefano Grasso, senior portfolio manager at Singapore-based fund 8vantedge Pte.
Given the favourable macro outlook and the ongoing two wars (Russia-Ukraine, Israel-Hamas) near oil-producing countries, we remain surprised by the low prices of this commodity - underscores.
Goldman Sachs: Commodity prices to rise
Meanwhile, analysts at Goldman Sachs Group Inc. estimate that in 2024, commodity prices will rise, as central banks lower the cost of credit, which will help support demand both in the industry and among consumers.
This optimistic outlook reflects recent comments from other market observers, including Macquarie Group Ltd. and Carlyle Group LP.
Analysts meanwhile note that crude oil is on track to record its third consecutive monthly price increase, as OPEC+ member countries continue to limit their oil production, and the United States tightens sanctions on oil deliveries from Russia - for its military aggression against Ukraine.
