2023-11-26 22:00:00
Written by – Marwa Al-Ghoul Monday, November 27, 2023 12:00 AM The Organization of Arab Petroleum Exporting Countries published, “OAPEC” Weekly developments in global oil markets in light of the Russian-Ukrainian crisis, as oil prices recorded their fifth consecutive weekly losses in the futures markets, amounting to regarding 0.04% for Brent crude and 0.5% for US West Texas crude.
The most important factors that caused the decline in oil prices included the following:
1- Postponing the holding of the 36th Ministerial Meeting of the OPEC+ group of countries until the end of this November, with the aim of holding further discussions regarding production levels, amid expectations that there will be no move towards increasing the scheduled crude oil production cuts during the year 2024.
2- Increasing sales of futures contracts, in light of the decrease in risk premiums, once morest the backdrop of a decline in geopolitical tensions in the Middle East region, and the disappearance of concerns regarding supply disruptions.
3- An increase in US commercial crude oil inventories by regarding 8.7 million barrels, in light of the increase in net imports and stable production at a record level of 13.2 million barrels per day.
4- An increase in gasoline stocks in the United States, coinciding with a decline in domestic demand for it to the lowest level in regarding two months, amounting to 8.5 million barrels per day.
5- The US dollar index recovered from its lowest level in two and a half months, supported by economic data that showed a decrease in unemployment claims, which makes oil more expensive in other currencies, and negatively affects the demand for oil.
As for the other factors that occurred as a result of the decline in oil prices, they included the following:
1- Positive near-term economic outlook for China – the largest global importer of crude oil.
2- Closure of a pipeline belonging to Main Pass Oil Gathering Co. due to a crude oil leak in the US Gulf of Mexico.
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