Crude oil prices fell during trading today, Monday, November 21 (2022) to trade near their lowest levels in two months.
This comes as supply concerns eased, concerns over fuel demand from China and the rising US dollar negatively impacted black crude prices.
Crude oil prices today
By 08:06 GMT (11:06 AM Mecca), futures prices forBrent crude The benchmark – for delivery in January 2023 – increased by 0.32%, to 87.34 dollars a barrel.
The price of futures also fellWest Texas Crude The United States – delivered in December – increased by 0.35%, to 79.80 dollars a barrel, according to data seen by the specialized energy platform.
And it was Crude oil prices It closed trading on Friday November 18, down more than 2%, and the two benchmarks (Brent and West Texas Intermediate) recorded weekly losses of 8.7% and 9.9% respectively.
Oil market conditions
“Aside from the weak demand outlook due to China’s restrictions to deal with Corona, the US dollar’s recovery today is also a bearish factor for crude oil prices,” said CMC Markets analyst Tina Ting.
“Risk appetite has become fragile, as all recent economic data from major countries point to a recession scenario, especially in the UK and the euro area,” he added. Reuters.
He explained that aggressive comments from the US Federal Reserve last week also raised concerns about the economic outlook in the US.
question in China
The number of new coronavirus cases in China remained near its peak in April as the country battled outbreaks across the country and in major cities.
Schools in some areas of the capital, Beijing, received lessons via videoconferencing technology on Monday after officials told residents to stay at home, while the southern city of Guangzhou ordered the most populous district to lock down for 5 days.
The first-month Brent crude futures spread tightened sharply last week, while WTI stalled, reflecting fears of tighter supplies.
Russian oil
Meanwhile, inventories of scarce crude fell in Europe as refineries built up inventories ahead of the European Union’s December 5 oil embargo. Russian oilwhich put pressure on physical crude oil markets in Europe, Africa and the United States.
The European Union’s energy policy chief said the European Union plans to complete its regulations in time for the implementation of the G7 plan to reduce energy consumption Russian oil price on December 5th.
For his part, RBC Capital analyst Mike Tran said that while spot market indicators in the North Sea and West Africa are far from strong, they also point to no signs of weakness in supplies.
Diesel markets remain tense as Europe and the US compete for barrels, while China nearly doubled its diesel exports in October of the previous year to 1.06 million tonnes, and the volume was much smaller than to 1.73 million tons in September.
still question in Chinathe world’s largest importer of crude oil, was hampered by coronavirus restrictions, while expectations of further interest rate hikes elsewhere sent the dollar higher, making dollar-denominated commodities more expensive for investors.
related topics..
Read also..
