March 30, 2023

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Oil fall on economic expectations


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Oil prices fell today in anticipation that demand for supply growth will outpace growth in 2022, although Omicron did not lead to the stricter restrictions imposed when other corona strains appeared.

Brent crude futures, benchmark, fell 0.6% to $ 73.27 a barrel at 02:15 GMT after losing 69 cents on Tuesday.

Meanwhile, West Texas crude futures for the United States fell 0.7% to $ 70.21 a barrel. It had fallen 56 percent in the previous session.

The International Energy Agency said on Tuesday that the increase in Covid-19 cases with the appearance of Omigran would weaken oil demand at a time when production is expected to increase, especially in the United States, indicating that supply will exceed demand until the end. At least next year.

Last Monday, however, OPEC raised its forecast for global oil demand for the first quarter of 2022, and stuck to its schedule for a return to pre-epidemic levels, saying Omicron would have a slight and short-term impact.

Another factor affecting the market is the appreciation of the dollar, which makes the products mentioned in it more expensive compared to other countries.

In another note lowering prices, industry data show that US crude oil reserves did not fall as much as expected last week.

U.S. Petroleum Institute data showed that crude oil stocks in the United States fell by 815,000 barrels in the week ended December 10, 2021. According to market sources, ten analysts expect a 2.1 million barrel fall in a Reuters poll.

Source: Reuters

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