Oil prices fell in the European market on Monday, deepening their losses for the fourth consecutive day, hitting the lowest level in two weeks, due to fears of a decline in demand levels for fuel during the remainder of this year, in conjunction with the growing fears about increasing supplies, which means that the market has turned into a surplus of supply once more. other.
American crude fell by 1.1% to the level of $ 79.93, from the opening level at $ 80.82, and recorded the highest level at $ 81.18, and Brent crude fell by 0.9% to the level of $ 81.22 a barrel, the lowest since November 5, from the opening level at $81.94, and recorded the highest level at $82.46.
When prices were settled on Friday, US crude lost 0.4%, and Brent crude fell 0.7%, in the third consecutive daily loss, due to a new rise in US drilling and exploration rigs.
In terms of trading last week, international oil prices lost an average of 0.5%, the third consecutive weekly loss, due to the broad rise in the levels of the US dollar against a basket of global currencies.
The Organization of Petroleum Exporting Countries "OPEC" lowered last week the forecast for global demand for oil during the fourth quarter of this year by 330,000 barrels per day from last month's forecast.
The World Organization attributed this to the slowdown in the global economic recovery due to the rise in energy prices, which renewed fears once again about the decline in global demand for fuel during the remainder of this year.
This comes at a time when there is increasing speculation that the administration of US President “Joe Biden” will resort to the strategic reserve of crude to calm prices. There is news indicating that the White House is discussing how to address the rise in inflation by exploiting the strategic reserve or stopping exports abroad.
Official data of "Baker Hughes" oil services company showed on Friday that the US drilling and exploration rigs rose "last week" by 4 rigs, the third consecutive weekly increase.
According to these data, the total operating platforms in the shale oil field increased to 454, which is the highest level since the week ending on April 10, 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. .
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