oil
witnessed oil prices It rose during Tuesday’s trading, despite news that the United States is planning to release more of the country’s strategic oil reserves, and fears of a decline in demand for crude oil in China.
Oil prices now
Brent crude futures rose 0.24% to $91.84 a barrel, and US West Texas Intermediate crude futures also rose 0.24% to $84.72 a barrel..
The most important events affecting the oil market
The dollar index – which measures the performance of the US currency against 6 other major currencies – witnessed a volatile session, during which it fell to its lowest level in nearly two weeks since October 6, and continued to trade down by 0.1% at 111.94 points.
The decline of the green currency lowered the cost of oil priced in dollars for buyers holding currencies other than the dollar, which provided some support to oil prices, despite the factors that may push crude to decline.
And oil had incurred heavy losses last week, due to pessimistic Chinese data and fears of recession, after crude had received great support from the OPEC + decision to reduce daily oil production by 2 million barrels during the month of November.
This decision – which came against the wishes of the United States – prompted the White House to accuse Saudi Arabia of siding with Russia and its pressure on the OPEC + member states to support the decision to cut production, which was met in succession in statements denying the accusation by those countries during the end of last week, and assurances that The decision was necessary to maintain the balance of the oil market, which has witnessed sharp fluctuations during the recent period.
Investors in the oil market are currently awaiting the release of the GDP data for China – the largest importer of crude oil in the world – tomorrow, which will have a significant impact on oil prices.
On the other hand, Bloomberg Agency, citing some of its sources familiar with the matter, reported this morning that the White House plans to announce the release of more strategic oil reserves to the United States to curb the rise in gasoline prices, which will fuel the rise in inflation at a time when the US Federal Reserve is struggling to tighten Monetary policy at a strong pace in order to control it.
The US Energy Information Administration said that oil production in the Permian field in Texas and New Mexico – the largest shale oil field in the United States – is expected to rise by about 50,000 barrels per day to a record level of 5.453 million barrels per day this month.
Analysts’ view of the oil market situation
Analysts explained ANZ Research In a note that after the decision to sharply reduce oil production by OPEC +, investors saw their long positions in oil futures increase.
The analyst said in CMC Markets Tina Ting The expectations of demand for oil in China have affected the sentiment of investors in the oil market, especially after the People’s Republic postponed the release of its economic indicators, which were scheduled to be released today, Tuesday, which greatly limited oil’s gains.