The value of the commodity is the highest since October last year; growth in industrial activity in China put pressure on the price
The price of a barrel of oil exceeded US$88 for the first time in 2024 this Tuesday (April 2, 2024). This is the highest trading value of the world’s main commodity since October last year, when it reached US$90. The increase in the price of a barrel of oil was driven by the increase in industrial activity in China, which indicates greater demand for the oil. oil.
On Monday (1st April), the financial analysis agency S&P Global reported that the Asian country’s industrial PMI (purchasing managers index) increased from 50.9 in February to 51.1 in March. This is the highest value since February 2023.
Regarding supply, OPEC (Organization of Petroleum Exporting Countries) has stopped injecting 2.2 million barrels of oil into the market since January. The cartel will meet on Wednesday (April 3) to discuss planning for the coming months, but the expectation is that this cut will be maintained.
Another factor putting pressure on the price of oil is the war between Israel and Hamas. The conflict in the Middle East has escalated in recent months and influential countries in the region and in the oil market such as Iran and Qatar have actively participated in negotiations to end the confrontation, but this attitude has increased instability in the market.
Since the beginning of the year, the price of a barrel of oil has increased by 16.8%.
