Oil prices went up due to the earthquake in Turkey
A massive earthquake in Turkey has sent oil prices up, but they, as well as the value of gold, are threatened by strong labor market performance in the US.
This is reported by the FBA “Economy Today”.
The publication notes that the day before, oil prices rose by 1.9%, rising to $81.2 per barrel, today they continued to rise by 1.7%, to $82.6 per barrel.
The reason was the strongest earthquake in Turkey in recent years: it provoked great destruction and the death of thousands of people, and in addition, the suspension of oil shipments through the terminal in Ceyhan. It is through it that European refineries receive oil from Azerbaijan and Iraq, the volumes are estimated at about 1 million barrels per day. The terminal was previously closed for three days, so the supply of oil to the market is limited, and this causes an increase in its cost.
Prices are also affected by the recovery of the Asian economy, primarily the Chinese economy, and the embargo on Russian oil products that came into force on December 5. The next sanctions against the Russian Federation may create supply problems and support the price of black gold.
As stated in the publication, the attention of market participants is focused on two factors related to the United States. Firstly, the head of the Federal Reserve System Jerome Powell is expected to speak today at the economic club in Washington, and secondly, data on stocks from the American Petroleum Institute will be published. The publication notes that while experts predict a recovery in oil prices to $ 90 per barrel by the end of February.
