Jordan word

Oil prices rose during early trading, Wednesday, near their highest level since October 2018, supported by the recovery in demand, and the waning of expectations of a soon return to Iranian crude supplies.

This significant rise in oil prices will be reflected in the local market in Jordan with an increase, before the price that is announced at the end of each month in the Kingdom.

Economist Hashem Akl said, in a press statement, that expectations indicate a rise in oil to $80, with the increase in demand and the easing of restrictions.

Aqel explained that the increase in the prices of petroleum derivatives globally, which is reflected on the local market until 15/6/2021, is as follows:

Gasoline 90 increased by 1.8%, equivalent to 15 fils.

Gasoline 95 rose by 1.2%, equivalent to 13 fils.

The price of diesel increased by 2.4%, equivalent to 14 fils.

Akl indicated that oil prices rose at the beginning of the week amid increasing optimism about demand, adding that oil prices are in a positive improvement in June as supply and demand recover at an uneven speed.

And he indicated that shipping costs are raising prices strongly, as higher shipping costs have led to higher prices for goods around the world, and shipping costs have increased by 547% compared to the seasonal average for the past five years.

Investors are seeing a boost that is making the oil market in short supply, and bets from hedge funds and money managers are becoming more optimistic. Analysts say a growing number of investors are seeing a shortage of oil leaving the world in short supply in the coming years. According to the mind.

Analysts believe that there is a need for US shale oil; Because OPEC + may not have enough spare capacity to meet the market next year, and more supply of shale may be needed in the United States, if US production remains at the status quo and does not grow next year.

Akl concluded by saying that global stocks may decrease by about 400 million barrels in 2022.” In other words, market balances do not begin to reach a state of equilibrium unless US production grows by 1.2 million barrels per day next year.