Oil prices rose to a three-month high

World oil prices remain under the influence of the war in Ukraine, restrictions on the purchase of Russian oil by Western countries and the expected increase in demand from China, where the quarantine quarantine is coming to an end. Quotes support the seasonal increase in demand for fuel for cars and forecasts of declining global inventories of crude oil and petroleum products.

Yesterday, August futures for Brent oil rose 2.6% to $ 123.6 / barrel, and July futures for WTI oil - by 2.3% to $ 122.4 / barrel, which is the maximum of the last three months.

The driver of the growth was yesterday's statement by UAE Energy Minister Suheil Al-Mazrui that oil will continue to rise as China's demand recovers, as well as OPEC Secretary of State Barkindo's report on a "significant shortage of investment in the oil industry that needs to be replenished." in OPEC + countries (except for 2-3 members) free capacity to increase production.

The market almost did not react to the data of the "bear" weekly report of the EIA, according to which crude oil stocks in the US unexpectedly rose by 2.03 million barrels during the week, although experts expected them to decrease by 2.5 million barrels. Distillate supplies increased by 2.59 million barrels, while expectations were +600 thousand barrels. Ethanol production decreased by 3% to 1.039 million barrels / day, which is higher than the average of the last 4 weeks.

Easing quarantine restrictions in some parts of China will increase economic activity and demand for energy resources. The Covid outbreaks in China led to a 6.7% drop in oil demand in April to 12.09 million barrels per day and crude oil refining by 10% to a 2-year low of 51.81 million tonnes.

On June 7, the World Bank lowered its forecast for world economic growth in 2022 by almost a third to 2.9%, noting that Russia's war against Ukraine has increased losses from the Covid-19 pandemic, and the recession in many countries will restrain rising prices. oil.

High oil prices support the quotations of corn, rapeseed and vegetable oils used in biofuel production. But the production of these crops will be limited by rising cultivation costs, especially for corn, which has been reduced in the United States and Ukraine due to rising prices for fertilizers and fuel.