Thursday, May 23, 2024

Oil prices fall after confirming the return of OPEC + products


Oil prices fell on Thursday after OPEC agreed to re-market its gradual market policy as corona virus infections around the world increased and many U.S. refineries, a key source of crude demand, went out of business.

Brent crude was down 15 percent, or 0.2 percent, at $ 71.44 a barrel during trading, down four cents on Wednesday. U.S. crude rose nine cents, or 20 cents, or 0.3 percent, to $ 68.39 in the previous session.

And agreed Organization of the Petroleum Exporting Countries (OPEC) Other manufacturers, including OPEC +, including Russia, are pursuing a policy of gradually reducing record production cuts by adding 400,000 barrels per month to the market on Wednesday.

But OPEC + raised its forecast for demand in 2022, while facing pressure from US President Joe Biden’s administration to accelerate production growth, saying the group was “happy” to reaffirm its commitment to increase supply.

The OPEC + Committee concluded its meeting yesterday, Wednesday, by consensus, without changing the production policy, and set October 4 as the next meeting of the Committee to review the production policy. OPEC + ”.

After the OPEC + meeting, Kuwaiti Oil Minister Mohammed al-Faris said that the prudent and balanced management of OPEC + was able to support the global oil industry during the Corona crisis.

He stressed the interest of member states in providing adequate supplies to the markets and the success of their efforts to restore balance and stability in the world economy.

Al-Faraz clarified that Kuwait’s share increase in October will be 400,000 barrels, or 27,000 barrels per day.

In the United States, oil refineries may resume operations after Hurricane Ida hits the region, while operations will face power and water cuts, which will prevent oil demand.

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The U.S. Marine Energy Controller said energy companies are rushing to restart bases and pipelines in the U.S. Gulf of Mexico, while producing about 1.4 million barrels a day.

Gulf of Mexico

The U.S. Energy Information Administration said yesterday that despite rising corona virus infections across the country, U.S. crude stocks fell 7.2 million barrels and supply of oil products supplied by refineries reached record levels.

The U.S. Office of Defense and the Environmental Protection said Wednesday that about 80% of oil and gas production in the U.S. area of ​​the Gulf of Mexico was shut down in the aftermath of Hurricane Ida that hit the Louisiana coast.

The office said more than 1.4 million barrels of oil and 1.88 billion cubic feet of natural gas a day were still on hold.

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

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