Oil takes a backseat despite new phase of war

Brent crude oil is currently trading higher than last week. On Friday, November 15, Brent oil cost $71,04 per barrel. At the time of writing (Thursday morning, November 21), it is $73,52 per barrel. There has been little movement in the price since Monday.

According to analysts, the market is holding its breath regarding a possible further escalation of the war between Russia and Ukraine now that the latter has received the green light from the US to also launch the American Atacms long-range missiles at targets on Russian territory. Putin has previously indicated in no uncertain terms that in that case Russia is also at war with NATO.

It is reported that on Tuesday (19 November) the first Atacms were actually fired towards Russia. Storm Shadow missiles were then also deployed, for which the United Kingdom gave permission. Russia in turn responded with the first long-range missile. The war is thus entering a new phase, while at the same time Ukrainian President Zelensky is hinting at a diplomatic end to the war that has now lasted more than a thousand days.

Another price-boosting factor, but more temporary, was a power outage that shut down production at Norway's Johan Sverdrup earlier this week. However, production from the largest oil field in northwestern Europe is back up to par, Reuters reported yesterday.

The weekly report from the US Energy Agency (EIA) that was released yesterday, has a bearish effect on oil prices. US commercial oil stocks have increased by 500.000 barrels in a week. That is more than expected. Furthermore, according to analysts, Chinese oil imports are picking up this month, but that is attributed to the low price and not to an actual increase in demand for oil in China.

Diesel
The price of diesel shot up last week to €126,18 per 100 liters. This week, a big price jump is also being made, to €132,41.