Saturday , May 8 2021

Oil prices rose due to a possible decline in supply

oil prices rose in the face of possible reductions in Saudi Arabia, OPEC, Russia, Brent del Mar, West Texas Intermediate supply
Oil prices rose about one percent after Saudi Arabia pressed OPEC to reduce supply. Photo: Pixabay

Oil prices rose on Monday about one percent, amid hopes that the main exporter of crude oil, Saudi Arabia, will push OPEC, and maybe Russia, to reduce supply towards the end of the year.

"Oil prices continue to recover… the market will continue to monitor the possible impact of cuts (supply), "he said. Sukrit Vijayakar, director of India Trifecta energy consultant.

OPEC urges producer groups and them allies reduce by 1.4 million barrels per day (bpd) offers on the market to adjust demand and avoid excessive inventory.

Russian Minister of Energy, Alexander Novak, noted that Russia, it's not a member of OPEC, plans to sign an association agreement with the group, and details will be discussed at OPEC's December 6 meeting in Vienna.

Despite the advantages of this Monday, Oil prices remain almost a quarter below their last peak, registered in early October, as a result of increased supply and slowing demand.

This is partly because Washington is given for Iran's main oil clients, especially in Asia, Unexpected broad exceptions sanctions imposed on Tehran in November.

It is hoped that Japan's Fuji oil refinery will continue to purchase Iranian crude oil thereafter Japan accepts one of these exceptionsindustry sources reported.

Japan has stopped all purchases of Iranian oil before receiving release in early November.

The market remains cautious amidst deep trade disputes between the two largest economies in the world, then United States and China they can't find a solution for their dispute at the last meeting of the Asia-Pacific Economic Cooperation (APEC) forum.

Hussein Sayed, head of market strategy at FXTM broker futures, said that US comments at the APEC summit "showed that There cannot be an agreement between President Donald Trump and his Chinese colleague Xi Jinping see the light when leaders meet at the G20 Summit later this month. "

Energy company America added two oil rigs in the week to November 16, which raised the total to 888, the highest level since March 2015, according to a weekly report from energy services company Baker Hughes.

Increased drilling activity This shows an additional increase in US crude oil production which has increased by almost a quarter this year, to a record high. 11.7 million barrels per day.

This Monday, Brent del Mar type oil barrel del Norte for delivery in January quoted at 67.41 dollars at the beginning of the session (03:00 GMT) on the electronic market of the Intercontinental Petroleum Exchange (ICE)

The Brent, international reference for oil prices, up 65 cents (0.96 percent) compared to the previous Friday's close, when it was at 66.76.

Meanwhile, West Texas Intermediate crude oil (WTI), references in the United States, for delivery in December also at 03:00 GMT, increased by 76 cents (1.33 percent) and quoted at 57.22 dollars.

For parts, baskets Organization of Petroleum Exporting Countries (OPEC) quoted on Friday for 66 dollars, 72 cents climb (1.09 percent) compared to last Thursday's session, the cartel reported.

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Iran challenges Trump; will continue to export crude oil despite sanctions

With information from Notimex.


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