Wednesday , March 22 2023

After four days of gains, oil prices are falling because of supply concerns


Oil prices down due to concerns about OPEC reduction in production of oil producers

Oil is a long line from Edward Drake's 1859 well. On October 5, 2017, the modern petroleum industry was opened at the Drake Well Museum and Park in Titusville, Pennsylvania. REUTERS / Brendan McDermid / File Photo

After European and Asian stocks slumped again, fears about the economic downturn made it worse.

Crude futures and crude oil prices fell from 72.07 to 72.07 dollars a barrel, down 72 cents or 1.08 percent.

US West Texas Intermediate (WTI) crude futures fell 57 cents to $ 56.63 a barrel.

The head of the International Energy Agency (IEA) warned of the effect of geopolitical instability in price.

"We are giving unprecedented uncertainties in the oil market," Fatty Bayrou told in a conference in Norway.

In October, the price of crude oil had declined for the past few months. Especially global trade, especially in the US,

The US-based crude production this year increased by 25 per cent to 11.7 million barrels per day (BPD).

Under these uncertainties, financial traders are alert to oil markets and look at the rising cost of the US shale output from the worst economic perspective.

In the last seven weeks, portfolio managers sold 553 million barrels of crude and fuels. The lowest in 2013,

Funds now have a net outgo of 547 million barrels. This is less than half of the 1.1 billion at the end of September. In January this year, it declined to US $ 1.484 billion.

Expect OPEC

The Organization of Petroleum Exporting Countries is attempting to distribute between 1 million to 1.4 million dollars on concerns about a similar production falling in 2014.

According to French bank BNP Paribas, the OPEC will agree that the distribution will be distributed in the next economic summit on December 9.

Brent would be able to recover $ 80 a year before the end of the year.

"In 2019 we expect an average of $ 69 per barrel and $ 76 per barrel," BNP said.

However, many IEAs have warned of "negative impacts" of the supply chain and other manufacturers that many analytical analysts believe that crude oil prices are likely to reduce consumption.

Additional reporting by Henning Gloestine; Edited by Dale Hudson

Our standards:The Thomson Reuters Trust Principles.
Source link