Oil prices expanded their rise with the opening of the US market on Friday, rising nearly 2.5%, to compensate for the entire losses incurred yesterday, after China’s decision regarding crude reserves. Supplies in the United States have returned to pre-Hurricane Ida levels.
American crude rose by about 2.2% to the level of $ 69.56, from the opening level at $ 67.95, and recorded the lowest level at $ 67.71, and Brent crude rose by more than 2.2% to the level of $ 72.84 a barrel, from the opening level at $ 71.28, and recorded the lowest level at $70.98.
When prices settled yesterday, US crude lost about 2.1%, and Brent crude fell by more than 2.0%, in the fourth loss within the last five days, due to China's plan to free up crude oil reserves.
The China Reserves Administration announced on Thursday that it will start offering crude oil reserves to the market through public auction to relieve pressure on domestic refineries in connection with rising raw material costs.
On Friday, the dollar index fell by more than 0.2%, to continue its losses for the second day in a row, reflecting the continued decline in the levels of the US currency against a basket of global currencies.
As we know that the depreciation of the US currency is in favor of the increase in the prices of dollar-denominated commodities, as their cost decreases for consumers of other currencies.
Producers in the US Gulf of Mexico are still struggling to resume operations less than two weeks after Hurricane Ida swept through the region, bringing strong winds and torrential rains, disrupting about 95 percent of the region's production.
As of Thursday, about 80% of US production in the Gulf of Mexico region remained idle, with 79 rigs vacant and out of operation, and Gulf of Mexico production represented about 17% of US crude oil production.
Yesterday, the US Energy Agency announced a decrease in commercial stocks in the country by about 1.5 million barrels, during the week ending September 3, in the fifth consecutive weekly decline, and experts' expectations indicated a decrease of about 5.9 million barrels.
According to these data, total commercial stocks in the United States decreased to about 423.88 million barrels, which is the lowest level since the week ending September 27, 2019, in a major positive sign of improving demand and withdrawal levels in the largest consumer of fuel in the world, especially after easing Closure restrictions associated with infection.
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