rose oil prices The global market, Tuesday, August 2 (August), following closing yesterday at its lowest level in more than five months, under pressure from a bleak outlook for fuel demand following weak Chinese economic data raised fears that the global slowdown might weaken demand for crude.
While the atmosphere of anticipation clouds with the start of the countdown to the meeting of the AllianceOPEC+“Which will be held virtually, on Wednesday, to determine whether oil producers will increase supplies or not, while tracking signs that physical markets have become less tight in recent weeks.
By 12:30 “Greenwich” time, Brent crude futures for October delivery rose 79 cents, or 0.8 percent, re-rising above $100, to record $100.82 a barrel, following falling 2.7 percent on Monday.
And US oil futures for September delivery rose 71 cents, or 0.8 percent, to $94.60 a barrel, following losing nearly 5 percent during the previous session.
and finished Brent And US crude in July was the second consecutive monthly loss for the first time since 2020, as the two benchmarks fell by 4.2 and 6.7 percent, respectively, as rising inflation and high interest rates exacerbated fears of a recession that erode demand for fuel.
The decline wiped out nearly all of the gains made since Moscow launched war with Ukraine on February 24, even following Washington and the European Union imposed a raft of sanctions on Russian energy exports.
And the spot difference for Brent, the difference between the two closest contracts, had greatly diminished, with the deepening of economic concerns, the recovery of Libyan production, and the emergence of signs of weak US demand for gasoline. On drums in the real world.
price turmoil
“The price outlook is starting to look a little more volatile than it was earlier in the year,” said Emma Richards, senior oil and gas analyst at Fitch Solutions. She added in an interview with Bloomberg TV that “demand side concerns are more and more infiltrating the oil market. We will likely see more of that later in the year.”
OPEC + meeting
The meeting of the “OPEC +” alliance led by Saudi Arabia and Russia is scheduled to start, Wednesday, via video technology at 13.00 GMT (15.00 in Vienna) to take a decision on production policy for the month of September.
And Archyde.com news agency quoted sources in “OPEC +” that the alliance will consider keeping oil production unchanged for the month of September, but according to two sources, a modest increase will be discussed.
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The OPEC + meeting comes following US President Joe Biden urged Saudi Arabia to pump more oil during a visit to Riyadh last month. The coalition has already worked to return all supplies cut back following the outbreak, although some members were unable to fully meet quotas.
industrial recession
On the demand side, fears of an industrial recession are rising, along with strict restrictions in China, the world’s largest oil importer and second largest consumer, to counter the spread of the Corona virus, which has slowed production.
The decline in crude prices also comes on the morning of the United States’ announcement of imposing sanctions on several companies that it said helped sell Iranian oil and petrochemical products worth tens of millions of dollars, a move aimed at increasing pressure on Tehran to curb its nuclear program while no new nuclear agreement was reached to allow the return of Iranian oil. for the markets.
Pelosi’s controversial visit
Contributing to the uncertainty in the markets is the arrival of US House Speaker Nancy Pelosi to Taiwan, despite warnings from Beijing, which is the first visit of a high-ranking US official to Taiwan in more than 25 years, which might lead to an escalation of tensions between the United States and China.
Record profits
For its part, the British oil company “BP” revealed, on Tuesday, its plans to increase investment in the oil and gas sector to enhance energy security and face the global supply crisis, following recording record profits during the second quarter of this year.
In this context, the CEO of the giant company, Bernard Looney, said that the British oil company will increase its spending on oil and gas by regarding $ 500 million as part of its efforts to address high energy prices and tight supplies, according to Archyde.com.
Looney said that the additional spending will go primarily to the production of natural gas from onshore wells in the Hynesville Basin, and production from its offshore projects in the Gulf of Mexico, both in the United States of America, pointing to the record profits that the company achieved during the second quarter, which is the highest quarterly profit in 14 years.
This comes following the British oil company’s profits jumped in the second quarter to $ 8.45 billion, the highest level since 2008, and exceeded analysts’ expectations of $ 6.8 billion, compared to a profit of $ 6.2 billion during the first 3 months of 2022, and $ 2.8 billion for the quarter. The second in 2021.
