Oil prices have risen again after a drop — Reuters
On May 22, global oil prices rose, although the market is still on track for a weekly decline. Analysts attribute this to uncertainty surrounding negotiations between the U.S. and Iran, as well as risks to shipping through the Strait of Hormuz, which is one of the world’s key oil supply routes.
This is reported by Reuters.
Today’s prices
Brent Crude oil futures rose by $1.66, or 1.6%, to $104.24 per barrel as of 04:05 GMT.
Meanwhile, futures for U.S. West Texas Intermediate (WTI) crude rose by $1.11, or 1.2%, to $97.46 per barrel.
Despite this, Brent fell 4.6% for the week, and WTI fell 7.6%. Prices fluctuated sharply due to shifting expectations regarding a possible peaceful resolution.
Why Everything Depends on Iran
A senior Iranian source told Reuters that the gap in negotiations with the U.S. has narrowed.
U.S. Secretary of State Marco Rubio also noted “some positive signs” in the talks, though the parties have yet to reach an agreement on Tehran’s uranium stockpiles and control over the Strait of Hormuz.
What analysts are saying
"Oil prices will only fall when oil fundamentals improve significantly, which looks like it won’t happen until 2027," said David Oxley, chief commodities economist at Capital Economics.
Commodities analyst Satoru Yoshida predicts that next week, the price of WTI will remain within the range of $90–110 per barrel.
Meanwhile, Fitch Solutions BMI has raised its average Brent price forecast for 2026 from $81.50 to $90 per barrel.
This is attributed to supply shortages, the need to repair damaged energy infrastructure in the Middle East, and a prolonged post-conflict normalization period.
OPEC+ may increase production
The seven leading OPEC+ oil-producing countries are likely to agree on a modest increase in production in July at a meeting on June 7. However, supplies from several countries remain disrupted due to the war with Iran.
The market expects oil prices to rise to $100 per barrel, according to Bloomberg.
Global oil prices rose during trading on Thursday, May 21, partially offsetting the sharp drop from the previous day.
Russian oil is on the rise again, shifting the balance of the Russian Federation’s revenues
Oil prices rose amid expectations of a meeting between Donald Trump and Xi Jinping. Traders are focusing on possible signals regarding a resolution to the conflict with Iran, which has affected global oil supplies.
