Oil prices are falling and attention is on US data
Oil prices fell during Tuesday’s trading session, by more than 1 percent, ahead of data that will shed light on the extent of Americans’ appetite for fuel during the summer driving season, with signs showing the decline of speculators on high prices.
The US government’s Energy Information Administration is scheduled to release data on US inventories, which are widely watched, on Wednesday.
A Reuters poll indicated that US inventories may have declined in the week ending June 23.
And by 15:18 GMT, Brent crude futures fell 1.16 percent, to $ 73.32 a barrel. US West Texas Intermediate crude futures also fell 1.17 percent, to $68.56 a barrel.
On the other hand, the markets considered that the turmoil that resulted from a rebellion that did not continue from the Russian private military group “Wagner” at the weekend did not pose an immediate threat to oil supplies from one of the largest producing countries in the world.
On Saturday, a clash between Moscow and the “Wagner” group was avoided, as the group’s heavily armed fighters withdrew from the city of Rostov, in southern Russia, under an agreement that halted their rapid advance towards the capital.
Immediately, Russian oil refineries raised the volumes they process to their highest levels in 10 weeks, as the maintenance season for refineries and processing facilities in Russia draws to a close.
“Bloomberg” agency quoted an informed source as saying that during the week ending on June 21, Russia processed more than 5.6 million barrels per day, an increase of approximately 115 thousand barrels per day over the previous week. This rate is the highest per week since the week ending April 12th.
At the same time, the average refining quantities rose during the month ending June 21 to 5.46 million barrels per day.
The daily refining activity in Russia recorded a gradual recovery during the current month, with the completion of maintenance work before the start of the period of high demand for fuel, during the agricultural harvest season and the summer vacation.
According to the Russian Ministry of Finance, Russia is considering reducing support for refineries, as part of an effort to cut public spending, in light of the war in Ukraine. Refinery subsidies could be halved in September.
And Russia pledged earlier this year to reduce its production, starting from the first of last March, by 500 thousand barrels per day, in response to the sanctions and restrictions imposed by Western countries on Russia, including the decision of the Group of Seven major industrialized countries to put a ceiling on Russian oil prices. and restrictions on its purchase.
2023-06-27 16:27:00
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