Thursday , May 6 2021

Oil: the fall in production continues to disappoint producers

# Algeria Oil prices continue their downtrend, reaching Tuesday, November 21, 2018, historically a low level. The prospect of slowing global economic growth does not help …

When the price of clean hydrocarbon exporting countries starts rubbing their hands, the downward trend that began in early October is confirmed.

Oil prices are at their lowest level in ten months. Yesterday, Tuesday, November 21, 2018, the Brent barrel in London closed at $ 62.53, or $ 23.41, lower than the highest level this year which reached October 4 – or 27.4% less.

This is the lowest course level for almost a year. And on the New York Mercantile Exchange (Nymex), oil also closed at its lowest level since November 2017, at $ 53.43.

According to some analysts, oil can be too abundant, especially if a slowdown in global growth is confirmed.

In addition, US sanctions against Iran, which were announced very badly, were reduced at the last moment. This is partly to keep oil prices from falling. Added to this is the fact that the world's largest producers, including the United States, have begun to anticipate a decline in Iranian production.

>>> READ ALSO: Oil: the fall continues and endangers the calculation of the producers

Thus, Russia and Saudi Arabia have greatly increased the amount of oil extracted, hoping to sell it when Iran does not sell as much now. Meanwhile, for its part, US production has reached a record even when strategic reserves are at a level rarely matched. All of these factors tend to keep prices down.

These price levels do business in importing countries such as Morocco, Senegal, the Democratic Republic of the Congo, Ivory Coast, Mali, Ethiopia, Kenya. While Algeria, Nigeria, Angola, Gabon or Congo are at risk, on the contrary, to see their economy become more depressed.

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