Crude prices retreat from highs but bumpy road ahead

CRUDE oil prices have reached a semblance of balance after a meteoric jump last month, when Dated Brent peaked at around US$137.04 per barrel on March 8. Prices are likely to be rangebound in the coming weeks, with bearish factors such as a Middle East-Yemen truce, the release of additional reserves by the US SPR and other members of the International Energy Agency, tempering the impact of short term supply risks due to the ongoing Russia-Ukraine war.

“Oil prices soared in February/March, but peak average impact is likely mid-year as balances tighten and inventories draw due to reduction in Russian oil exports although releases of strategic stocks by the US and the IEA will temper the shortfalls and likely keep peak prices around US$120/b on average,” S&P Global Commodity Insights said.