Oil prices rose on Monday as concerns about supply disruptions lingered. Brent crude oil was up 1.2% to $113.09 a barrel, and U.S. West Texas Intermediate crude oil was up 1.1% to $107.57 a barrel.
The rise in oil prices comes as the market continues to be weighed down by concerns about supply disruptions. The ongoing war in Ukraine has disrupted Russian oil exports, and there are also concerns about production outages in Libya and Ecuador.
In addition, the International Energy Agency (IEA) has warned that global oil demand could rise by more than 2 million barrels per day in 2023. This is due to the ongoing economic recovery from the COVID-19 pandemic, as well as rising energy demand in China.
The rise in oil prices is likely to add to inflationary pressures in the global economy. Oil is a major input cost for many industries, and a rise in oil prices will likely lead to higher prices for goods and services.
The market is likely to remain volatile in the coming weeks as the situation in Ukraine and other oil-producing countries continues to evolve. However, the longer-term outlook for oil prices is uncertain, as it will depend on a number of factors, including the pace of the global economic recovery and the development of new oil supplies.
Analysts’ Take
Analysts are divided on the outlook for oil prices in the coming months. Some analysts believe that oil prices will continue to rise as supply disruptions persist. Others believe that oil prices will fall as the global economy slows down.
“The oil market is in a state of flux,” said Michael Tran, an analyst at RBC Capital Markets. “There are a lot of factors that could push oil prices up or down in the coming months.”
Tran said that the key to the oil market will be the pace of the global economic recovery. If the global economy continues to grow, then oil demand will likely rise, which could push oil prices higher. However, if the global economy slows down, then oil demand could fall, which could push oil prices lower.
“It’s too early to say what will happen to oil prices in the coming months,” said Tran. “The market is very volatile, and it will depend on a number of factors.”
