Oil prices lose more than 2.5% before the weekly report of the US Energy Agency

 Oil prices extended their decline with the opening of the American market on Wednesday to lose more than 2.5%, resuming its losses that stopped yesterday as part of recovery from the lowest level in three weeks. This is based on preliminary data that showed a decline in crude stocks in the United States, and traders are awaiting official data later today within the weekly report of the US Energy Agency.

 

US crude fell by more than 2.5% to the level of $ 66.69, from the opening level at $ 68.47, and recorded the highest level at $ 68.76, and Brent crude fell by about 2.5% to the level of $ 69.09 a barrel, from the opening level at $ 70.78, and recorded the highest level at $71.15.

 

When settling yesterday, US crude achieved a 2.5% increase, the first gain in the last three days, within the recovery process from a three-week low of $65.17 a barrel, and Brent crude rose by 2.3%, after it recorded the previous day at $67.62 a barrel. lowest since July 20.

 

"Sinopec", the largest refiner in China, said that it will reduce the operating rates of some factories by 5-10%, and attributed this to weak levels of demand and withdrawal in the country.

 

With the increase in cases of Corona virus, some Chinese cities have tightened restrictions on closure and sanitary isolation, as part of attempts to prevent the spread of the highly contagious “delta” strain in the country.

 

In preliminary data, the American Petroleum Institute announced yesterday that commercial stocks in the country decreased by 0.82 million barrels during the week ending August 6, in the third consecutive weekly decline, exceeding experts' expectations of a decline of about 0.6 million barrels.

 

According to these data, total commercial stocks in the United States decreased to about 439.7 million barrels, which is the lowest level since the week ending February 7, 2020, in a strong sign of the levels of withdrawal and demand in the largest consumer of fuel in the world.

 

Later today, traders are awaiting official data on commercial stocks and production levels, within the weekly report of the US Energy Agency, and expectations indicate a decline in stocks by about 0.8 million barrels.

 

As for US production, it stabilized the previous week without any change, to keep the total production at 11.2 million barrels, and the United States is the largest oil producer in the world.