Monday, July 15, 2024

Corona’s new strain is pushing oil markets to drop some long-term successful challenges


The distorted strain of the corona epidemic “Omigron” caused a sharp 10 percent drop in oil prices over the weekend, recording the sharpest decline since April last year, refreshing fears of a broader recession and the possibility. Wide surplus return of supply in the first quarter of next year.
The ministers and experts of the “OPEC +” countries are preparing for a series of meetings next week, which in the light of the new unexpected fall in prices, closure controls in many countries and the fall in demand after the failure to re-examine the market situation, the idea of ​​postponing production again raises the table between manufacturers.
In this context, the International Atmospheric Administration’s “Plots” agency said that the sharp decline in crude oil futures contracts was due to fears of a rapid spread of the new “Covit-19” variant announced in South Africa. This year it will fall on the same day.
He pointed out that the loss on November 26 was the biggest drop since April 2020, and for the first time since last September, West Texas shipped less than $ 70 a barrel of intermediate crude oil, with flights banned in some countries. Anyone who travels from South Africa to Hong Kong is found to be alien to African countries.
The report quoted international analysts as saying that the new change was a major setback for investors, as it was likely to backfire and lead to some panic sales, as prices could fall further.
He pointed out that the markets were already tense and had already led many to abandon some long-term successful bets, a decline mainly seen in spot trades, which slowed the decline in crude oil.
He said: The consolidated decision from the US-led Strategic Oil Reserve may be irrelevant to this new shift and will focus on any new considerations that “OPEC +” may take, and justified the warning of this “new shift”. OPEC + ”in increasing productivity.
He pointed out that as part of a global effort involving India, Japan, South Korea, China and the United Kingdom, the US administration could withdraw its earlier decision to release 50 million barrels of crude oil from strategic reserves. Millions of barrels will be released to the market in the coming months.
The report says that OPEC and its allies “OPEC +” will hold a series of meetings in the coming days, as the Technical Advisory Committee will meet tomorrow at the delegate level, followed by the Ministerial Meeting Monitoring Committee, along with Saudi Arabia and Russia, the next day.
He confirmed that he was scheduled to meet with OPEC ministers on December 1 (December), before inviting Russia and nine other partners in the “OPEC +” coalition to hold talks on December 2 (December).
He explained that the recent slowdown in supply growth has exacerbated fears of a tightening of the market due to higher prices. Overall production growth, especially in non-oil countries “OPEC” members.
The report points out that a strong increase in supply is expected between 2023 and 2025, and that non-OPEC countries account for more than 60 percent of total growth, with the United States accounting for most of the growth outside OPEC +. “With a value of 1.9 million barrels a day, especially due to shale oil, despite the commitment to capital regulation, prices remain at $ 70 a barrel in the short term, increasing the chances of supply growth, especially in the light of the sharp increase in” OPEC + “production of 400,000 barrels per day on a monthly basis.
On the other hand, oil prices fell along with global stock markets last weekend on fears that the new strain would undermine economic growth and demand for fuel.
Oil prices lost $ 10 a barrel on Friday, the biggest drop in a single day since April 2020, worrying investors after the discovery of a new strain of the corona virus and reinforcing fears of a global over-distribution of inflation in the first quarter of next year.
On Friday, the World Health Organization classified the new strain as “worrying” and named it Omigron. Countries including the United States, Canada, Britain, Guatemala and European countries imposed restrictions on travel from South Africa, where the strain was detected.
Brent crude futures fell $ 9.50 or 11.6 percent to $ 72.72 a barrel, recording a weekly decline of more than 8 percent.
West Texas Intermediate crude was down $ 10.24 or 13.1 percent at $ 68.15 a barrel after Thanksgiving holiday in the United States on Thursday, and the U.S. crude oil loss for the week was over 10.4 percent.
On the other hand, the US “Baker Hughes” weekly report on drilling operations said that drilling activity in the United States continues to increase, with six sites increasing the number of drilling tools in operation this week.
The total number of rickshaws is now recorded at 569, which is 249 more than this time last year, while the number of active rickshaws is hundreds less than the 790 active rickshaws dug in the pre-Kovit world.
The number of drilling rigs in the United States has risen to 467 this week, up from six rigs and 226 rigs since this time last year, while the number of gas rigs and various rigs remained unchanged. The number of gas-powered rickshaws reached 102.
For the week ending November 19 (November) the United States Energy Information Administration estimates that oil production will increase by 100,000 barrels per day to 11.5 million barrels per day.
Oil production is still well below the record level of 13.1 million barrels per day recorded before the outbreak in the United States last year, while the total number of rigs in Canada has increased by four. The number of operating oil and gas leaks in Canada has now reached 171. 69 increase this year.
He pointed out that the number of rigs in the Permian Basin has increased by 2 this week, in addition to the 119 rigs since last year, while there has been no change in the number of rigs in Eagle Ford, the country’s second largest producer. Number of active rigs and total number of rigs in the Fermiyan Now 280 with a total of 42 operating systems on Eagle Ford.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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