Crude oil prices have risen after previous sharp declines, due to the resumption of US supplies from the Gulf of Mexico and the end of the strike crisis in Norway, in addition to rapid increases in Libya’s production.
Prices receive support from OPEC + cuts in oil supplies by about 7.7 million barrels per day, as the high production cuts are likely to be maintained during the market review and indicators evaluation meeting next December, given the widespread pandemic pressures on global demand, Which is expected to lose more than 5 percent this year.
Experts and oil analysts told Al-Eqtisadiah that prices corrected their course after a wide wave of losses due to the return of workers in the American Gulf after the landing of Hurricane Delta, and Libya’s taking a big step towards reopening its largest field, indicating that the cyclone had closed about 92 Percent of oil production, and Libyan production will reach nearly 300,000 barrels within ten days. “
The specialists pointed out that the continuing pressures of the Corona pandemic on oil prices puts the OPEC + alliance in front of a new challenge at the next meeting, as producers were preparing to ease the restrictions of reducing production by about two million barrels per day from the beginning of the new year, but unfavorable market conditions may occur. It pushes them to return their accounts and adhere to the big discounts to absorb the vast abundance of supply, especially with the return of the Libyan and Norwegian productions.
Sevin Schimmel, director of the international German “VG Industry” company, confirmed that the price increase comes within the framework of a corrective path, successive price fluctuations in the market and after a continuous wave of price declines due to uncertainties in demand, the exacerbation of injuries and other negative factors, referring to the refineries’ struggle to deal with a decline Wide demand. He expected the OPEC + group to continue its pressure on producers to improve compliance with production restrictions, especially in light of the current market difficulties, especially the weak demand for crude oil and fuel, pointing to recent confirmation by Iraq, which is the second largest oil producer in OPEC, that it will continue Complying with the OPEC + agreement to curb production and make the necessary compensation to push towards restoring the balance between supply and demand in the market.
For his part, Robin Noble, Director of Oxyra International Consulting, said, “The global economy in general and the energy industry in particular are facing unprecedented challenges this year, unique in its challenges,” which was described by the International Energy Agency as a disorder that “we have not seen since the world wars and the Great Depression.”
He pointed out that the world is looking forward to positive developments articulated that lie in reaching an effective and widely available vaccine to treat the Corona epidemic, which is the only thing capable of moving stagnant waters in the global economy and broadcasting a positive atmosphere and sentiment, especially with regard to demand data, and despite this, there are changes. Drastic action has already occurred in the global economic system, most notably remote work, the distance from flying, and the possibility of returning to the economic shutdown at any time.
For his part, Marcus Krogh, chief analyst of the oil and gas research company, A Control, said that sudden developments in the Libyan production situation led to confusion in the accounts of producers who are struggling to restrict supply, as Libya took a big step towards reviving the collapsing oil industry by restoring Opening its largest field in conjunction with the efforts of major OPEC + producers to curb global supplies. In turn, Moahi Kwasi, Managing Director of Aggracraft International, said, “The global economy is facing the worst case of declining oil demand throughout history, and the difficulties are greatly evident in the American oil industry, which is exacerbating burdens and difficult for it to recover in light of shrinking drilling and investment and increasing debt burdens.” Heavy on the strip. “
With regard to prices, Brent crude futures closed up 73 cents, equivalent to 1.8 percent, to $ 42.45 a barrel, while US West Texas Intermediate crude contracts increased 77 cents, or about 2 percent, to determine the settlement price at $ 40.20 a barrel.
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