Negative stability in oil futures contracts around $ 80 a barrel and eyes on an OPEC + meeting

Oil futures contracts fluctuated in a narrow range tilted to the downside, to witness the rebound of the Nymex crude contracts from their top since September 28, when they tested their highest since July 6 and then reversed their highest since November 24, 2014 and the rebound of contracts Brent crude from its highest since September 28, when it tested its highest since October 19, 2018, ignoring the rebound of the US dollar index for the third consecutive session from its highest since September 28, 2020, according to the inverse relationship between them.

 

This comes on the cusp of developments and economic data expected today, Monday, by the American economy, the largest producer and consumer of oil in the world, and with looking forward to the activities of the meeting of the Organization of Petroleum Exporting Countries, OPEC and its allies producing from outside, led by Russia, or what is known as “OPEC +”, and in the shadows of market pricing. Due to the global energy crisis, which prompted China, the world's largest oil importer, to recently order its energy companies to secure energy supplies at any cost with shortages in return for the return of oil supplies in the US Gulf of Mexico to pre-Hurricane Ida levels.

 

At exactly 06:10 am GMT, the NYMEX crude oil futures contract for November delivery fell 0.34% to trade at $75.64 a barrel, compared to the opening at $75.90 a barrel, knowing that the contracts started the session with a gap. The price is bullish, after it concluded last week's trading at levels of $75.88 per barrel.

 

Brent crude oil prices for December delivery also fell 0.40% to trade at $79.04 a barrel, compared to the opening at $79.36 a barrel, knowing that the contracts also started trading on an upward price gap after it concluded last week’s trading at $79.28 a barrel, while the index declined. The US dollar is 0.01% to 94.04 compared to the opening at 94.05, knowing that the index ended the week's trading at 94.04.

 

Investors are currently awaiting the release of the industrial sector data for the second largest industrial country in the world, with the release of the factory orders index, which may reflect an acceleration of growth to 1.1% compared to 0.4% in the previous reading for the month of July. .

 

On the other hand, we followed last Friday the announcement by Merck and Ridgeback Biotherapeutics about a new drug to be taken orally for the Corona virus that reduces the risk of hospitalization or death by about 50% in coronavirus patients, and in the event that this drug is licensed by regulatory agencies, It could be the first oral anti-coronavirus medicinal drug.

 

According to the latest figures issued by the World Health Organization, which were updated last Friday at 03:54 pm GMT, the number of cases infected with coronavirus has risen to more than 233.50 million infected cases, and about 4,777,503 people have died, while the number of vaccine doses given, according to the latest update. By the organization as of last Saturday, more than 6,143 million doses.

Otherwise, the current OPEC + cuts are estimated at about 5.6 million barrels per day to be implemented until the end of next year, after the end of the cuts was previously extended from April 2022, and in another context, the effect of Hurricane Ida that hit the Gulf of Mexico in America has faded, knowing that According to the US Energy Agency, the hurricane had already halted 2.3 million barrels per day of refining capacity in Louisiana, or 13% of the total refining capacity of America.

 

We would like to point out, because the weekly report of Baker Hughes showed last Friday that drilling and drilling rigs operating in the United States increased by 7 rigs to 428 rigs, to reflect its fourth consecutive weekly gain. Other than that, American oil production rose during the last week of September September by 500,000 barrels per day to about 11.1 million barrels per day, with supplies in the Gulf of Mexico returning to pre-Hurricane Ida levels.

 

It is reported that US oil production declined by 2.0 million barrels per day, or 18% from its all-time high of 13.1 million barrels per day in March 2020, as a result of the recent closure of some drilling and exploration platforms due to the widening gap between the cost of extraction and the selling price, especially after a pandemic. Corona, knowing that US oil production reached its lowest level in August 2020 at 9.7 million barrels per day before witnessing a recent recovery.