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Energy Shares Climb as Oil Prices Continue to Rise — Energy Roundup

Shares of energy companies rose as oil prices continued to climb following a week of strong price action, with U.S. benchmark oil prices finishing at their highest level since March 8.

Natural gas prices retreated after touching their highest level since 2008 earlier this week.

A team of commodities analysts from Commerzbank recently raised their oil-price forecast for each of the next three quarters due to the growing likelihood that the EU will agree on an oil embargo on Russian oil. This will increase demand for non-Russian oil, which should support prices for WTI and Brent.

However, they believe the oil market would see the balance between supply and demand reach an equilibrium during the second half of the year despite lingering supply risks, which is why the team expects oil prices to slide back below $100 per barrel during the second half of 2022.

As the U.S. 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 who are members of the Organization of Petroleum Exporting Countries, as well as representatives of countries like Russia which have more recently aligned themselves with OPEC, will hold a virtual meeting to discuss production plans. The meeting comes amid heavy pressure from Washington to increase production caps.

 Write to Amy Pessetto at amy.pessetto@dowjones.com 

(END) Dow Jones Newswires

May 27, 2022 17:12 ET (21:12 GMT)

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