December 4, 2021

Dubai Week

Complete Dubai News World

New corona strain lowers oil prices

New corona strain lowers oil prices

The future continuedRaw Brent It was discarded for the third consecutive session and fell $ 1.69, or 2.1%, to $ 80.53 a barrel at 0327 GMT.

And the price dropped West Texas crude oil The U.S. median was $ 2.04 or 2.6%, reaching $ 76.35 a barrel. The settlement price for US crude was not set on Thursday due to the Thanksgiving holiday.

CMC Markets Analyst Kelvin Wong said: Oil prices While market participation in the United States has fallen due to the holidays, it is likely to fall in tandem with broader financial markets for fear of reversing Corona’s new strain movements, which could hurt demand.

It is the administration of the President of the United States Of the past Last Tuesday, it announced plans to withdraw millions of barrels of oil from strategic reserves in a bid to cut prices in conjunction with other major consumer countries such as China, India and Japan.

A source in the Organization of the Petroleum Exporting Countries said:OPEC“Such a withdrawal could lead to an increase in supply in the coming months, according to a panel of experts advising ministers in OPEC countries.

The OPEC Economic Group Council expects a surplus of 400,000 barrels per day in December, up from 2.3 million barrels per day in January and 3.7 million in February.

Expectations of an increase in oil supplies dominate the chances of a meeting.OPEC +The panel, which includes OPEC and its allies, will decide on immediate production on December 2.
The committee will decide whether to continue to increase production to 400,000 barrels per day in January.

See also  Gold prices in Saudi Arabia today, Tuesday, November 2, 2021

However, benchmark crude deals are on track to record the first weekly increase in about a month, as the total amount taken from reserves is estimated at 70 to 80 million barrels, which is lower than market participants expected.

“Since the amount is small, I think the goal is to ease supply tightness and not make a big impact on the oil markets,” Sudomu Tsukimori, president of the Japan Petroleum Industries Association, told reporters on Thursday evening, according to Reuters.