US crude fell by 1.7% to the level of $ 70.66, from the opening level at $ 71.89, and recorded the highest level at $ 72.06, and Brent crude fell by 1.75% to the level of $ 74.12 a barrel, from the opening level at $ 75.44, and recorded the highest level at 75.45 $.
US crude, when prices settled on Friday, lost 0.9%, and Brent crude fell by 0.4%, in the second consecutive daily loss, with continued corrections from the highest level in six weeks.
In terms of trading last week, international oil prices rose by an average of 3.5%, the fourth consecutive weekly gain, thanks to hopes of strong demand for fuel in the United States.
On Monday, the dollar index rose 0.2%, to continue its gains for the third consecutive day, recording its highest level in a month at 93.40 points, reflecting the continued rise of the US currency levels against a basket of major and minor currencies.
The broad rise in the levels of the US dollar, comes in light of the increasing odds that the Federal Reserve will announce that it will reduce its bond-buying program before the end of this year.
As we know that the rise of the US currency negatively pressures the prices of dollar-denominated commodities, as their costs rise for consumers of other currencies.
The pace of US oil production in the Gulf of Mexico is recovering, with operations close to returning to normal levels, after Hurricane Ida passed two weeks ago and Tropical Storm Nicholas last week.
During the past few days, operations increased by about 25%, bringing the region’s total production to about 75%, leaving 0.25% of production suspended until the moment, amid expectations that production will return to 100% levels this week.
Gulf of Mexico production represents about 17% of US crude oil production, which was 11.5 million barrels per day before Hurricane Ida, and is currently stable around 11.2 million barrels per day.
Official data of the "Baker Hughes" oil services company showed on Friday that the US drilling and exploration rigs rose "last week" by about 10 rigs, the third consecutive weekly increase.
According to these data, the total operating platforms in the shale oil field increased to 411 platforms, which is the highest level since the week ending on April 17, 2020.
Thanks to high drilling activities, US production has jumped by more than 47% since mid-2016 to a total of 13.1 million barrels per day in March 2020, before stabilizing recently around 11.5 million barrels per day due to the Corona pandemic, and the United States is currently the largest oil producer in the world .
0 Comments