Oil prices are waiting for a jump with the support of...

Oil prices are waiting for a jump with the support of...
Oil prices are waiting for a jump with the support of...

Crude oil prices tended to decline due to the imposition of closure restrictions and travel restrictions to confront the spread of the variable or micron virus in many countries of the world, but the losses were curbed by positive news about the production of a new drug to combat the epidemic, in addition to the evidence of the effectiveness of current vaccines in facing the variable.
Also, prices are supported by the contraction of US oil stocks at a greater level than previous expectations, in addition to the willingness of the OPEC + group of producers to intervene in the market on an ongoing basis to adjust production levels in a way that enhances the balance between supply and demand and supports stability.
He told Al-Eqtisadiah, oil analysts, that US crude futures rose 2.3 percent, and prices got a good boost after the US Energy Information Administration reported that crude oil stocks fell by 4.72 million barrels last week.
The specialists pointed out that transportation was affected by the new Omicron restrictions, which led to a rise in gasoline stocks in the United States, as demand fell by nearly half a million barrels per day last week, especially in light of the restrictions that were applied in some Chinese cities, while counter data show that the effect of Omicron Its global demand is still somewhat limited so far.
They stressed that if demand recovers due to the success in containing the risks of the epidemic, this will lead to a scarcity of supply in the coming years, which will increase the price hikes and volatility, pointing to data issued by the International Energy Agency stating that high prices do not necessarily lead to the growth of oil supplies.
In this context, Mofeed Mandra, Vice President of the Austrian LMF Energy Company, says that crude oil prices are in flux, but they may regain gains later due to several factors, including the energy crisis in Europe and the interruption of supplies from Libya and Nigeria, in addition to the weakness of the dollar, which has an inverse relationship. with crude oil prices.
He explained that the oil trading movement has become quiet due to the festive season and the approaching end of the year, noting that price gains have faltered during the past two months, partly due to demand concerns after the emergence of the Omicron variable and as a result of the state of tension and excessive fears that accompanied its discovery and led to a decline in consumption, especially in Asia. Oversupply in the short term.
For his part, Andre Grossi, director of the German energy company MMAC, explained that crude oil prices are likely to return to the pace of gains soon, despite the increase in supply from OPEC + due to the energy crisis in Europe and the increase in demand for oil products in power generation. US Gulf Coast refineries have reduced diesel shipments to Europe to prioritize domestic demand and Latin American buyers.
He pointed out that the oil markets are concerned about the possibility of an exacerbation of the suffering of demand under the influence of the spread of Omicron in addition to the looming increase in supply, but on the other hand, producers fear a shortage of supplies in the coming years unless investment in new projects increases, as investment in oil and gas supplies has remained. The new one remains at its lowest level in a decade and a half.
According to David Desma, an analyst at South Court International, international expectations warn that the global economy will continue to rely mainly on crude oil for at least another decade.
He cautioned against the important warnings issued by OPEC and its major producers that the decline in global investments in new supplies in recent years may lead to a possible shortage of oil supply in the future.
In turn, Winnie Akilo, an American analyst at African Engineering International, says that new oil investments may face wide challenges in the next year 2022, especially as some giant companies such as “BP” and “Shell” are talking about that their oil production has already reached its peak, pointing out that This means a greater role for OPEC to provide the needs of oil supplies, especially since the spare capacity in the world is concentrated almost mainly in the Middle East.
She pointed out that the International Energy Forum recently warned that upstream investment is still low for the second year in a row, estimated at $341 billion, indicating that the demand for oil remains and will continue to grow in the future, pointing to the International Energy Agency’s warnings that the world is not investing enough to meet its needs. The future of energy and uncertainty about policies and demand trajectories causes wide fluctuations and risks in the market.
On the other hand, with regard to prices, oil gave up the gains recorded earlier in the session Thursday and declined, affected by some countries in the world imposing new restrictions on travel to limit the increase in infections with the Omicron mutator, but losses remained limited due to positive developments related to the pandemic.
West Texas Intermediate crude futures fell 12 cents, or 0.1 percent, to $ 72.62 a barrel, after jumping 2.3 percent, in the previous session.
And Brent crude futures fell 18 cents, or 0.1 percent, to $ 75.11 a barrel, after rising 1.8 percent, in the previous session.
Wednesday’s big gains were partly driven by a larger-than-expected drop in US crude stocks last week. And the United States granted approval for anti-coronavirus tablets, starting at the age of 12, in the first local treatment for the disease to be taken by mouth, as well as a new tool to combat the rapidly spreading mutant Omicron.
Meanwhile, AstraZeneca reported that three doses of its coronavirus vaccine are effective against Omicron, citing data from a laboratory study conducted by Oxford University.
On the other hand, governments around the world have re-imposed a set of restrictions to limit the spread of Omicron.
But concerns about the potential impact of movement restrictions on fuel demand have receded as the OPEC+ group, made up of the Organization of the Petroleum Exporting Countries, Russia and allies, left the door open to reconsidering its plan to add 400,000 barrels per day to supplies in January. ).

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