March 25, 2023

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After several days, the oil price drops


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Oil prices fell today after a significant rise this week as Mexico’s crude output fell and China, the world’s largest crude importer, had a recent outbreak of the corona virus.

Brent crude futures fell 0.4 percent to $ 70.80 a barrel at 05:25 GMT, while the US West Texas intermediate crude futures fell 0.4 percent to $ 67.26 a barrel.

Futures contracts for the two crude rose about eight percent in the previous two days, which wiped out most of the losses incurred during the seven sessions.

Prices soared after a drop of 400,000 barrels a day from Mexico, but as a result of an oil rig fire, the state oil company expects to resume production on the 30th of this month.

“Despite today’s weakness, Brent should be well supported because the oil market is still suffering from a large deficit and this situation will not change soon,” said Edward Moya, OANDA’s chief market analyst.

Crude stocks fell 1.6 million barrels in the week ended August 20, 2021, while gasoline stocks fell one million barrels.

Market analysts expected a decline of 2.7 million barrels for crude stocks and 1.6 million barrels for petrol stocks.

Source: Reuters

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