June 2, 2023

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Oil prices posted weekly gains for fourth consecutive week.. Know details

I Wrote – Marwa Al Ghul

Sunday, April 16, 2023 at 02:00 PM

Recorded Oil prices For the fourth consecutive week of weekly gains, global benchmark crude oil posted a 1.40% gain and US West Texas Intermediate crude oil rose 2.26%.

After last trading week ended in the green on Friday, the International Energy Agency said global demand would rise to a new record high this year on a recovery in consumption in China.

The agency also warned that major production cuts announced by producing countries in the Organization of the Petroleum Exporting Countries, OPEC, and other producers in the OPEC alliance led by Russia would increase oil supply shortages and harm consumers.

During trading on Friday, it rose, according to Sky News Arabia Brent crude futures 22 cents, or 0.3%, to $86.31 a barrel. U.S. West Texas Intermediate crude futures settled at $82.52 a barrel, up 36 cents, or 0.4%.

Both benchmarks posted their fourth straight week of gains in light of quiet fears over last month’s banking crisis and the OPEC+ alliance’s sudden decision to increase production cuts last week.

The International Energy Agency said in its monthly report on Friday that global oil demand will rise by two million barrels per day in 2023 to reach a record 101.9 million barrels per day, driven largely by strong Chinese consumption after the lifting of related restrictions. The covid pandemic.

The company added that demand for jet fuel will account for 57% of demand growth in 2023.

But OPEC on Thursday pointed to the risks of falling oil demand over the summer, among other things, cutting output by 1.16 million barrels a day.

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In its monthly report, it said OPEC+’s decision would harm consumers and the recovery of the global economy.

“Consumers facing inflation in the prices of basic goods will now have to stretch their budgets further,” the company said in a statement.

“This has a strong impact on economic recovery and growth,” the company added.

The company said it expects global oil supplies to fall by 400,000 barrels per day by the end of the year, which is expected to boost production by a million barrels per day from outside OPEC+, compared with 1.4 million at the start of March. barrels per day, which will be reduced by producing countries in the group.

It reinforced expectations that the US Federal Reserve is nearing the end of its interest rate hike cycle.

But the U.S. currency rose on Friday, making dollar-denominated oil more expensive for investors than holders of other currencies, hurting demand.