Continued Crude oil prices fall weekly Last weekend, Brent crude fell 4%, the lowest level since October, and US crude fell 5.4%.
As the United States negotiates with the world’s largest economies, such as Japan, China and India, this week, expectations of supply growth are mounting, while renewed corona injuries and the widespread closure of some European countries are causing widespread losses. Discuss the possibility of diversification from strategic oil reserves.
In this context, the international “Platz” company for oil information said that futures contracts for crude oil have fallen sharply, and that the oil market is focusing on the effects of new epidemics in Europe and the rise of the US dollar. Al-Ektisadia ”newspaper.
The agency’s latest reports show that oil demand indicators in most major European economies have continued to decline over the past week, with supply chain disruptions continuing to put pressure on governments as they interact with high and rising incidence of corona epidemics in most countries.
The report points out that Austria’s announcement – the headquarters of the “OPEC” – will implement a nationwide general closure from tomorrow, and the move comes amid a rapid increase in the number of cases in most parts of Western Europe. And can declare a wider return for closures that may increase demand.
Germany has also imposed stricter restrictions on unvaccinated citizens due to the corona epidemic, and cases have risen sharply after new cases reached record levels, although officials there have so far said “nationwide locking is not yet on the table”. Belgium and the Netherlands.
The report, citing data from “Securities DT”, confirms that oil markets are once again facing their worst rival, explaining that the closure of the Corona epidemic has led to a slump in Austria’s entry into closure. Recovering need and returning doubts about the continued recovery of movement functions.
Fear of another epidemic in Europe
He noted the reassurances of international analysts regarding the continued imposition of crude oil prices, adding that the rise in corona cases across Europe threatens market expectations in the short term. The widening oil market deficit could lead to a global energy crisis that could push oil prices as high as $ 100 a barrel, and fears of a recurrence of an epidemic in Europe could shortly lead to a crunch on demand for crude oil.
The strong decline in forward prices for diesel and petrol reflects the narrow basic picture of road fuel in Europe, where demand is steadily rising and refineries are struggling with rising raw materials and operating costs, leading to reductions. In distribution. In the midst of this market tightness, stocks continue to rise at the expense of high potential savings, which reduces supply reserves, he said.
For its part, the International “World Oil” report said that the market was dominated by the epidemic, while the oil market focused on the potential for the US and China to strategically release crude reserves.
He explained that oil had plummeted in the past month, after rising to a seven-year high, and that US President Joe Biden had tried, despite taking a cautious approach to reviving OPEC + production, due to concerns over higher petrol prices. The US Strategic Petroleum Reserve has switched to potential output and contributed to support a potential weakening factor in the Chinese economy.
Exotic American demand
The main reason for the oil fall was the return of fears in the markets as the number of people infected with the corona virus increased, which led to the complete closure of Austria from tomorrow.
In an effort to curb the spread of the disease, Merkel described the situation in Germany as “deplorable” due to the high number of cases, and German Chancellor Angela Merkel’s low demand for oil again, as the Netherlands re-imposed some general closure measures for the first time in three weeks, beginning last week. Raised concerns about.
The slump was exacerbated this week when the US negotiated with the world’s largest economies, such as Japan, China and India, to discuss the possibility of a move away from strategic oil reserves aimed at reducing oil prices. , Which raised the prices of most commodities. The United States has been experiencing high inflation for the past few months, with the consumer price index hitting a 30-year high.
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