Global Oil Prices Remain Stable Amid Geopolitical Tensions
Despite recent increases in crude oil prices, experts predict limited volatility in the market.
Crude oil prices experienced a notable rise following the escalation of tensions between Israel and Iran.
On a recent trading day, prices for U.S. West Texas Intermediate (WTI) crude reached $72.98 per barrel, marking a 7% increase, the highest daily jump since 2022. However, experts, including energy analyst Miodrag Kapor, suggest that significant price increases are unlikely in the medium term, contrary to the energy crises of the 1970s when global economies were heavily reliant on fossil fuels.
Analysts believe that prices will likely cap at around $90 per barrel unless further geopolitical developments, such as the closure of the vital shipping route between Oman and Iran—through which a substantial portion of the world's oil passes—occur.
Kapor indicated that the current geopolitical situation is unlikely to yield prices exceeding this threshold.
In Serbia, the rising crude oil prices are not expected to significantly impact the prices of petroleum derivatives.
Kapor highlighted that these prices are regulated and controlled by local authorities.
He noted that any increase in crude oil prices generally does not benefit the market as a whole, with countries like Russia potentially being the exception.
Further, Kapor emphasized that the current economic dynamics are markedly different from those of the 1970s.
Today, there is a greater dependence on alternative energy sources and renewable energies, which dilutes the global reliance on fossil fuels.
He anticipates that oil prices will remain in the $70 to $90 range, without approaching the $100 per barrel mark seen in previous years.
The International Energy Agency (IEA) has stated that it is prepared to release strategic oil reserves to mitigate any potential shortages resulting from the increased tensions.
In contrast, the Organization of the Petroleum Exporting Countries (OPEC) expressed concerns that such interventions could disrupt market stability, suggesting a preference for maintaining market control to maximize profits.
Kapor concluded that oil prices are fundamentally influenced by supply and demand dynamics.
While global economic growth signs indicate a slowdown, which is expected to reduce demand pressures, he reiterated his outlook that significant increases in oil and derivative prices are unlikely in the foreseeable future.
On a recent trading day, prices for U.S. West Texas Intermediate (WTI) crude reached $72.98 per barrel, marking a 7% increase, the highest daily jump since 2022. However, experts, including energy analyst Miodrag Kapor, suggest that significant price increases are unlikely in the medium term, contrary to the energy crises of the 1970s when global economies were heavily reliant on fossil fuels.
Analysts believe that prices will likely cap at around $90 per barrel unless further geopolitical developments, such as the closure of the vital shipping route between Oman and Iran—through which a substantial portion of the world's oil passes—occur.
Kapor indicated that the current geopolitical situation is unlikely to yield prices exceeding this threshold.
In Serbia, the rising crude oil prices are not expected to significantly impact the prices of petroleum derivatives.
Kapor highlighted that these prices are regulated and controlled by local authorities.
He noted that any increase in crude oil prices generally does not benefit the market as a whole, with countries like Russia potentially being the exception.
Further, Kapor emphasized that the current economic dynamics are markedly different from those of the 1970s.
Today, there is a greater dependence on alternative energy sources and renewable energies, which dilutes the global reliance on fossil fuels.
He anticipates that oil prices will remain in the $70 to $90 range, without approaching the $100 per barrel mark seen in previous years.
The International Energy Agency (IEA) has stated that it is prepared to release strategic oil reserves to mitigate any potential shortages resulting from the increased tensions.
In contrast, the Organization of the Petroleum Exporting Countries (OPEC) expressed concerns that such interventions could disrupt market stability, suggesting a preference for maintaining market control to maximize profits.
Kapor concluded that oil prices are fundamentally influenced by supply and demand dynamics.
While global economic growth signs indicate a slowdown, which is expected to reduce demand pressures, he reiterated his outlook that significant increases in oil and derivative prices are unlikely in the foreseeable future.
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