The Organization of Arab Petroleum Exporting Countries, OAPEC, published weekly developments in global oil markets, as crude oil prices achieved weekly gains in futures markets, amounting to about 2.4% for Brent crude and 4.5% for US West Texas Intermediate crude.
The report stated that the main factors that contributed to the rise in oil prices included the continued escalation of geopolitical tensions in the Middle East region, its negative repercussions on the movement of oil trade by tankers across the Red Sea, the decline in diesel exports to Europe in light of the sanctions imposed on Russia, the disruption of global trade movement, and the limited… Production of refineries in the United States of America due to planned maintenance operations scheduled to end during the current month of March.
The report continued that the main factors that contributed to the rise in oil prices included a decline in US gasoline inventories for the fourth week in a row, reaching their lowest level in two months, which is about 244.2 million barrels, that is, 2% less than the five-year average during this same period of the year.
The report indicated expectations that the OPEC+ group of countries will extend voluntary oil production cuts, totaling about 2.2 million barrels per day, during the second quarter of 2024, with the aim of strengthening precautionary efforts aimed at supporting the stability and balance of the global oil market.
As for the other factors that caused the rise in oil prices, the report indicated that US commercial oil inventories rose for the fifth week in a row, reaching 447.2 million barrels, the highest level since November 2023, against the backdrop of unplanned power outages in refineries linked to weather disturbances. Last January, concerns about the economic prospects in China – the largest global oil importer, as factory activity contracted for the fifth month in a row, adding to signs of weak demand.
The report added that other factors that caused the rise in oil prices also included weak US economic data, which showed a slowdown in the largest economy in the world, and the Federal Reserve’s adherence to the decision to postpone lowering interest rates in the near term – despite the noticeable decline in inflationary pressures, which may weaken demand. On oil.
2024-03-03 18:44:00
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