Crude Oil Prices Surge Amid Supply Concerns and Declining Exports

Crude oil prices saw a significant increase during trading today, Tuesday, amid rising concerns in the markets about supply shortages from Russia and Iran, as well as a decline in global oil exports in 2024, marking the first decrease since the COVID-19 pandemic.

Performance of crude oil prices today:

U.S. crude oil contracts recorded an increase of 0.75% today, Tuesday, reaching $73.92 per barrel, while Brent crude contracts rose by 0.79% to record $76.79 per barrel. These gains reflect the growing concern regarding the tightening supply of oil in the markets in the coming period.

Reasons for the rise in crude oil prices during trading:

Concerns about oil supply shortages in the markets have supported the rise in prices, as reports from Goldman Sachs anticipated a decline in Iranian crude oil production due to potential political changes with the incoming administration of the elected U.S. president and the imposition of stricter sanctions.

Additionally, reports of declining global crude exports bolstered prices, as shipping sector data indicated that global crude exports in 2024 experienced a 2% decline, marking the first decrease since the COVID-19 pandemic. This decline is attributed to weak demand growth and a reshuffling of trade routes due to changes in refineries and pipelines, which raised further concerns about supply shortages.

Performance of other energy contracts:

Regarding other energy contracts, heating oil futures recorded an increase of 1.16%, reaching $2.3623 per gallon. Meanwhile, gasoline contracts fell by 0.88% to record $2.0396 per gallon, while natural gas contracts saw a significant decline of 3.81% to record $3.532 per million British thermal units.

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