Oil prices rise 2% after Ukrainian attacks on Russian refineries

Oil prices rose today, Wednesday, by about 2%, supported by a possible disruption in production after the Ukrainian attacks on Russian refineries, and amid expectations of strong global demand and hopes that the Federal Reserve (the US central bank) may begin lowering interest rates soon, despite the difficulty of curbing inflation in the United States. United States, it seems.

According to Reuters, Brent crude futures for May delivery rose $1.52, or 1.9%, to $83.44 a barrel by 1300 GMT. The US West Texas Intermediate crude contract for April rose $1.62, or 2.1%, to $79.18.

Despite the strong rise, Brent crude oil traded in a narrow range above $80 per barrel for more than a month, but it briefly rose above $84 at that time.

In an earlier sign of strong demand, the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday maintained its forecast for oil demand growth at 2.25 million barrels per day in 2024, which is higher than many other forecasts.

The International Energy Agency, which expects demand growth to be much lower, issues its latest forecast on Thursday.

Oil and broader financial markets found support from sentiment that slightly higher-than-expected US inflation would not derail an expected interest rate cut by mid-year. Low interest rates support demand for oil.