Oil prices under pressure, renewed concerns about global demand

 Oil prices fell in the European market on Wednesday, to continue their losses for the third day in a row, near the lowest level in two weeks recorded yesterday. For fuel in the world, losses are curbed by a new decline in crude stocks in the United States.

 

US crude fell by more than 0.5% to the level of $70.09, from the opening level at $70.47, and recorded the highest level at $70.78, and Brent crude fell by 0.4% to the level of $72.04 a barrel, from the opening level at $72.32, and recorded the highest level at $72.80.

 

When settling Tuesday, US crude lost 1.8%, the second daily loss in a row, and recorded its lowest level in two weeks at $ 69.22 a barrel, and Brent crude fell by 1.3%, in the third daily loss in a row, and recorded the level of $ 71.08 a barrel, the lowest since 21 last July.

 

Concerns about the global demand for fuel renewed again, in light of the increasing spread of the delta strain of the Corona virus in most of the largest oil consuming countries in the world.

 

The United States and China, the world's two largest oil consumers, are grappling with the rapid spread of the highly contagious delta strain, which is expected to curb demand for fuel if lockdown restrictions and quarantine restrictions expand.

 

In preliminary data, the American Petroleum Institute announced yesterday that commercial stocks in the country decreased by 0.88 million barrels during the week ending July 30, in the second consecutive weekly decline, less than experts' expectations of a decline of about 2.9 million barrels.

 

According to these data, total commercial stocks in the United States decreased to about 440.6 million barrels, which is the lowest level since the week ending February 7, 2020, in a strong sign of withdrawal and demand levels 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 3.2 million barrels.