Oil Prices Rise Due to Supply Risks in the Middle East
Oil prices closed the week with an increase due to supply disruptions and shipping risks in the Middle East.
With the increase in supply disruptions and risks to energy transportation in the Middle East, oil prices closed the week with a strong increase, and barrel prices exceeded 100 dollars.
Weekly Changes in Oil Prices
Despite the decline experienced on Friday, oil prices managed to complete the week with a strong increase. The barrel price of US West Texas Intermediate crude oil closed the week at 100.05 dollars, gaining 9.37 percent in value.
Brent oil showed an increase of 8.65 percent, reaching the level of 104.61 dollars.
Supply Disruptions in the Middle East
Supply disruptions in the Middle East and increasing risks regarding energy transportation became the main determining factor in the rise of oil prices.
While developments in the region increased concerns regarding the future of global oil supply, they led to a sharp rise in prices on a weekly basis.
Production Losses and Inventory Data
While it was stated that global oil inventories have decreased by approximately 400 million barrels since the beginning of the year, the daily crude oil production loss in the Middle East rose to an average of 6.7 million barrels in August.
While this amount was at the level of approximately 5 million barrels in July, the US Energy Information Administration expects production cuts to average 5.7 million barrels per day in the last quarter of the year.
Shipping Security and Risk Areas
Supply concerns in the oil market are not limited to the Strait of Hormuz; attacks on tankers and the targeting of energy facilities are at the center of the markets' focus.
In addition, risks to oil transportation around the Bab el-Mandeb Strait are among the other important developments closely monitored.
Analysts' Future Expectations
PVM Oil Associates analyst Tamas Varga stated that if the supply deficit persists, prices could retest the peak of 126 dollars seen in April.
Energy Aspects director Amrita Sen stated that China's increase in oil purchases and the rapid decline in global inventories are among the factors supporting prices.