Crude oil prices tended to rise due to the evacuation of US oil platforms as a result of Hurricane Delta, which entered the Gulf of Mexico and the continued efforts of OPEC + producers to curb exports and restrict the global supply of crude oil.
On the other hand, the price gains curb the continuation of rapid infections with the Coronavirus, which renewed concerns about global demand, especially with the faltering agreement on the American stimulus plan and the return of the growing oil stocks.
In this context, Mofid Mandra, vice president of the Austrian company “LMF” for energy, told Al-Eqtisadiah that price fluctuations continue in the market due to the changing dimensions of the pandemic, which made global demand slow and surrounded by increasing doubts about the recovery amid the return of cases Coronavirus infection in many parts of the world.
He added that the chances of achieving price gains are still very limited, and most analysts’ expectations are for them to remain around the level of $ 40 a barrel until the end of this year, indicating that pressures have exacerbated recently on prices with the continued high global stock surplus along with the problem of stalling demand, especially with the end of the season Driving in the United States and the approaching season of refinery maintenance in the world, especially America.
For his part, Vittorio Musazzi, director of international relations at the Italian energy company “Sanam”, says that uncertainty surrounds the global economy in light of the continuous rise in the number of epidemics, especially in the major European economies, which have begun to re-impose some restrictions to limit the spread of the disease, but the positive factors in the market. It will remain and will prevent a repeat of the Great Crash scenario, which occurred last April.
He mentioned that international reports and experts agree that most of them agree that there is little room for price gains for the remainder of 2020, even if the American elections are held smoothly and in a calm atmosphere, noting that the OPEC + production cuts and the decrease in US oil production have succeeded in providing relative stability. For prices.
Winnie Achyllo, an American analyst at the International African Engineering Company, believes that the pressures of the second wave of the epidemic are hurting the growth of the global economy and disrupting it, and is already leading to a loss of fuel consumption in the United States and other economies about 10 percent below the levels of last year.
She pointed to the importance of OPEC’s emphasis on adhering to efforts to restrict oil supply and making every effort to restore balance and prevent the widening gap between supply and demand, pointing out that the organization stressed that reaching an effective vaccine for the epidemic has become a necessity, otherwise we will face a very difficult scenario in which doubts increase The major risks and risks that destabilize the oil market and affect the pace of economic recovery in all countries of the world.
On the other hand, with regard to prices, oil prices rose yesterday, as workers in the oil sector evacuated platforms in the Gulf of Mexico in the United States before Hurricane Delta. .
U.S. West Texas Intermediate crude futures rose 27 cents, or 0.68 percent, to $ 40.22 a barrel, after falling 1.8 percent on Wednesday. Brent crude futures rose 31 cents, or 0.74 per cent, to $ 42.30 a barrel, after falling 1.6 per cent, on Wednesday.
With expectations that Hurricane Delta will increase in intensity to a Category 3 storm with winds of up to 193 kilometers per hour, oil producers such as “Chevron” evacuated 183 offshore facilities and stopped production of 1.5 million barrels per day of oil.
The Gulf of Mexico produces 1.65 million barrels per day in July, according to the US government. The region, which accounts for 17 per cent of US crude production, was affected by a number of storms over the past few months, each of which negatively affected oil production for a while.
Prices were also supported by a possible production disruption in the North Sea in Europe due to a labor strike in Norway.
On the demand side, hopes for another rise in US demand for fuel were dashed, as White House officials confirmed on Wednesday that the stimulus negotiations were stalled a day after US President Donald Trump suspended talks on a wide-ranging package to mitigate the repercussions of Corona.
The US Energy Information Administration data revealed on Wednesday that gasoline stocks in the United States decreased more than expected last week, reaching their lowest levels since November, and distillate stocks declined, but crude oil supplies increased by 501 thousand barrels, as production and imports increased.
On the other hand, US stock index futures rose about 200 points yesterday, after the Dow on Wednesday recorded its best day in months, as investors await updates on discussions of the ongoing fiscal stimulus plan.
The OPEC basket of crude rose, at $ 40.45 a barrel, on Wednesday, compared to $ 40.33 a barrel the previous day.
The daily report of the Organization of Petroleum Exporting Countries (OPEC) said Thursday that the price of the basket, which includes the average prices of 13 crude produced by the member states of the Organization, achieved its third consecutive increase, and that the basket lost a few cents, compared to the same day last week, when it recorded 40.65 dollars. Barrel.
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