Oil prices have surged by 16% in the last quarter, indicating that export restrictions imposed by OPEC and its partners are effectively controlling global oil supplies.
On Friday, West Texas Intermediate (WTI) futures settled above $83 per barrel, marking the highest closing price in over a week.
The market structure has shifted from a bearish contango to a bullish backwardation this year, indicating a tightening of the physical oil market.
The OPEC+ coalition has decided to prolong daily production cuts of approximately 2 million barrels until the end of June. This move has fostered expectations of a reduction in global oil inventories.
Additionally, factors such as Ukraine’s drone attacks on Russian energy facilities, tensions in the Middle East, and increasing global demand have contributed to the upward pressure on prices.
While maintaining their existing forecasts, JPMorgan Chase & Co. suggested this week that Brent crude, the international benchmark, could approach the $100 mark by September if the impact of Russia’s production cuts is not balanced by countermeasures.
