Energy shares climb as oil prices continue to rise – Energy Roundup
Shares of energy companies rose as oil prices continued to climb after a week of strong price action, with benchmark U.S. oil prices ending at their highest level since March 8.
Natural gas prices retreated after hitting their highest level since 2008 earlier this week.
A team of commodity analysts at Commerzbank recently raised its oil price forecast for each of the next three quarters on the growing likelihood that the EU will agree to an oil embargo on Russian oil. This will increase demand for non-Russian oil, which should support WTI and Brent prices.
However, they believe that the oil market would see the balance between supply and demand come into balance in the second half of the year despite continuing supply risks, which is why the team expects prices to prices fall back below 100 dollars a barrel during the second half of the year. 2022.
As US Memorial Day weekend marks the start of the summer driving season, the next near-term catalyst for energy markets is expected to arrive next week when oil ministers from the United Nations Oil exporters, as well as representatives from countries like Russia that has more recently aligned with OPEC, will hold a virtual meeting to discuss production plans. The meeting comes amid strong pressure from Washington to raise production caps.
Write to Amy Pessetto at [email protected]
(END) Dow Jones Newswire