Oil Prices Continue to Fall as Supply Concerns Decline By Alborsanews

Oil Prices Continue to Fall as Supply Concerns Decline By Alborsanews
Oil Prices Continue to Fall as Supply Concerns Decline By Alborsanews

© Reuters. Oil prices continue to decline as supply concerns ease

Oil prices continued their decline during morning trading, today, Thursday, driven by the decline in supply shortage fears after European governments failed to reach an agreement on a ceiling for the price of Russian oil, and also with US gasoline reserves recording a greater-than-expected increase.

Crude futures fell 0.55%, equivalent to 47 cents, to reach $84.94 a barrel, according to Intercontinental Exchange data, while the US crude price recorded $77.56, down 0.49%, or 38 cents, at 8:36 Cairo local time.

According to Reuters, European governments did not reach an agreement on a price ceiling for Russian oil, on Wednesday, and European diplomats told the agency that the talks would resume on Thursday or Friday evening.

Representatives of the European Union met to discuss the proposal of the seven countries to put a price ceiling on Russian oil between 65 and 70 dollars a barrel, but some saw it as too little and others found it too high, according to Reuters.

US inventories also had a role in the decline in prices, despite a decline in stocks of about 3.7 million barrels, which is higher than analysts’ expectations for a decrease of 2.6 million barrels, but gasoline stocks increased by 3.1 million barrels, according to data from the US Energy Information Administration, which relieves concerns about the extent of supply falling short of demand. .

At the same time, there was downward pressure on the price of oil, including China’s expansion of imposing restrictions due to the rise in coronavirus cases, according to Reuters news agency.

Also, the PMI data for the US economy was disappointing, as the manufacturing and services indices contracted during the past month, indicating a slowdown in economic activity, which reduces the demand for oil, and the performance of the index in France was disappointing, as it contracted in both sectors at a time when analysts expected Record expansion in the service sector.

And limiting a larger decline in oil prices, the American fell 0.31% to 105.75 points, which made oil less expensive for investors in other currencies.

The US currency lost much of its momentum after US inflation data and producer price data last October, which came less than expected, prompting expectations for a rate hike in December to turn towards an increase of 50 basis points, compared to an increase of 75 basis points that was expected before that.

According to the “Feed Watch” tool, 75% of investors expect an increase in interest rates by 50 basis points, while the rest expect an increase of 75 basis points. At 75 basis points.

The article is in Arabic

Tags: Oil Prices Continue Fall Supply Concerns Decline Alborsanews

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