OPEC production issues push oil prices higher

Saturday February 12, 2022 / 04:50 / by Tom Kool of Oilprice.com / Header image credit: Oilprice.com
News of an “imminent” nuclear deal with Iran sent oil prices lower this week, but the reality of OPEC undersupply quickly changed sentiment and pushed prices higher on Friday.
Friday, February 11, 2022
Wherever you looked this week, it seemed like Iran was at the center of all the oil market news. The prospect of a breakthrough in the nuclear deal, a breakthrough that was assumed to be imminent by several participants, sent oil prices lower on the week after last week’s bull run to around $90. The fact that Iranian crude would take several months to reach the markets if a deal was struck shows that this was largely driven by sentiment. On the fundamental front, OPEC+’s underperformance is potentially flirting with 1m bpd in February, news that even led the IEA to get involved in the demand for more oil. The IEA has joined the ranks of India and other major importers, all calling on Middle Eastern exporters to bring more rough to markets.
Iran increases crude exports amid progress in talks. Iranian crude exports hit their highest level since early 2019 as talks on reviving the Iran nuclear deal enter their final stages – December and January saw outflows of around 800,000 bpd , nearly a quarter more than year-on-year.
Chinese coal prices are falling due to government interference. After rising 24% on the year, Chinese thermal coal futures fell this week to ¥835 per metric ton ($130/mt) after China’s economic planning body said it crack down on companies that inflate coal prices and pledged to do everything possible to stabilize prices.
US jet fuel prices climb to highest since 2014. Boosted by a global crunch in middle distillates and record diesel demand, U.S. jet fuel prices rose to $2.75 a gallon, their highest level since September 2014, despite domestic production of about 1 .5 million bpd exceeding consumption by nearly 100,000 bpd.
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The post office OPEC production issues push oil prices higher first appeared in Oilprice.com on February 11, 2022.
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