By: Mohamed Farouk
Mubasher: The price per barrel (pb) of Kuwaiti oil gained $1.35 by the end of trading on Tuesday to close at $60.83 pb compared to Monday’s closing at $59.48 pb, according to data released by the Kuwait Petroleum Corporation (KPC).
Commenting on this milestone, oil analyst Mohamed Al-Shatti said that the rise in Kuwaiti oil comes on the back of the rising geopolitical tensions.
Tuesday’s closing price is the highest for Kuwaiti oil in five months, or since early June, the analyst told Mubasher, noting that the highest recorded price for 20107 was in May.
Globally, oil prices marked their first decline in four sessions on Tuesday, but were still near their two-and-a-half-year high amid forecasts of higher shale production from the US and ahead of preliminary data regarding the US’ crude stockpiles.
The Organization of Petroleum Exporting Countries (OPEC) on Tuesday projected that US shale output would exceed forecasts and record its highest rise in the coming four years, which may pressure crude prices.
Meanwhile, Morgan Stanley raised its forecasts for oil prices, noting that prices will rise in the coming two-and-a-half years, projecting that Brent crude will reach $62 pb by the end of 2017 compared to its previous guidance of $55 pb.
By 8:55 am GMT, Brent crude, for January delivery, was down 0.25% to $63.53 pb, while US crude (Nymex), for December delivery, fell 0.42% to $56.96 pb.
Translated by: Nada Adel Sobhi
