The price of North Sea Brent crude oil in trading on Wednesday (October 22) reached $106.03 per barrel, indicating a 0.3 percent increase or 34 cents compared to the previous day. Meanwhile, the price of WTI crude oil in the United States also increased by 28 cents, trading at $94.42 per barrel.
Reasons for the Increase in Oil Prices
The increase in oil prices is due to concerns about supply stemming from an attack on the office building of the state-owned Saudi Aramco in Dhahran, Saudi Arabia. This incident led to a fire and concerns about its impact on the country's oil production. Analysts believe that these developments could affect the global oil market and lead to greater price volatility.
Read more: Structural Transformation of the U.S. Energy Market and Neutralizing Oil Shock
Market Analysis and Predictions
Hiroyuki Kikukawa, senior analyst at Nissan Securities Investment, emphasized that concerns about oil supply due to recent events in Saudi Arabia have led to price increases. He predicted that the price of WTI oil in the United States would fluctuate between $90 and $100 per barrel.
Kikukawa also noted that the increase in Russian diesel exports may alleviate supply shortages in the market and prevent severe price fluctuations on both sides. These predictions could help oil producers and consumers better prepare for potential changes in the market.
In the early hours of trading on Wednesday, both oil indices temporarily fell by more than one percent, indicating reasonable volatility in the oil market. However, the news of the attack on Saudi Aramco quickly impacted the market and drove prices upward.
Considering that Saudi Arabia is one of the largest oil producers in the world, any disruption in production or supply from this country can have significant effects on global oil prices. Therefore, the increase in oil prices following this event has raised further concerns for analysts and market participants.
Read more: Houthi Attacks on Aramco Oil Facilities and Injuries to Four People in Riyadh · Japanese Ships Purchase Middle Eastern Crude Oil Through Ship-to-Ship Transfer
