World Oil Prices Expected to Rise Due to Global Dynamics
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30 March 2023 11:46 WIB
TEMPO.CO, Jakarta - Laba Forexindo Berjangka director Ibrahim Assuaibi predicts world oil prices would increase between 71.86 to 75.92 per US dollar per barrel in trading on Thursday, March 30. Previously, at market closing on Wednesday evening, March 29, world oil prices strengthened to the level of 73.95 US dollars per barrel.
According to Ibrahim, oil prices rose for the third straight session on Wednesday as the halt in some exports from Iraqi Kurdistan raised fears of tight supplies. "There are also other reasons due to the eased fears of a global banking crisis that supports risk sentiment in the broader market," he said in a statement on March 29.
He said crude exports of 450,000 bpd (barrel per day) from the Northern Kurdistan region were halted on Saturday, following an arbitration decision confirming Baghdad's approval was needed to ship the oil.
On Wednesday, Norwegian oil company DNO started to halt production at its field in Kurdistan. The company's Tawke and Peshkabir fields produce an average of 107,000 barrels per day in 2022, a quarter of Kurdish's total exports.
“The longer the shutdown continues, the tighter the supply outlook will be. And supply concerns will continue to support oil prices, while oil-state disputes continue." he elaborated.
On the other hand, union strikes in France and Germany brought economic activity in both countries to a halt this week, indicating some short-term weakness in oil demand. French refineries experienced continuous operations, while German air travel and public transport were disrupted.
RIRI RAHAYU
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