The expert named the reasons for the rising cost of oil

The rise in oil prices in recent days has been driven by several factors, including natural disasters and geopolitical events. Olga Veretennikova, Vice president of the Borsell analytical company, told Izvestia on June 11.

"There were several prerequisites for oil growth. On the one hand, these are fires in Canada, which have been raging for a week and have affected production," she said.

According to her, wildfires in the oil-producing province of Alberta have led to a reduction in oil sands production by more than 344,000 barrels per day, which is about 7% of the total crude oil production in the country. Two operators were forced to evacuate staff and temporarily stop work.

"It is difficult to predict how long the fires will last, so it is unknown how long the decline in supply from Canada will last," the expert added.

Another important factor was the softening rhetoric of US President Donald Trump regarding the trade war with China.

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"The ongoing negotiations may lead to positive agreements, which will reduce pressure on the global economy," she explained.

In addition, the market was supported by employment data in the United States, which indicate the stability of the economy, but a slowdown in hiring. This, against the background of low inflation, increases the likelihood of a Fed rate cut as early as September, which also stimulates the growth of oil prices.

"The seasonal factor also plays a role: the holiday period begins in the United States, which traditionally increases demand for energy resources," the specialist emphasized.

In the near future, price dynamics will depend on the outcome of negotiations between the United States and China, as well as on the possible return of Iranian oil to the market in the event of a resumption of the nuclear deal.

"We expect continued volatility. If there are no sharp shocks, the price may fluctuate in the range of 63-68 dollars per barrel," Veretennikova summed up.

On May 31, it was reported that eight OPEC+ countries agreed on a third consecutive accelerated increase in oil production by 411,000 barrels per day due to the forecast for the stability of global economies and current strong market factors, which is reflected in low commercial oil reserves. Following the meeting, the members of the association noted that "the gradual increase may be suspended or canceled depending on changing market conditions."