2023-04-16 12:00:00
I wrote – Marwa Al Ghoul
Sunday, April 16, 2023 02:00 PM
registered Oil prices Weekly gains for the fourth week in a row, as the global benchmark crude recorded an increase of 1.40%, and the US West Texas Intermediate crude oil recorded an increase of 2.26%.
This came following the last trading week, Friday, ended in green, following the International Energy Agency said that global demand will rise to a new record level this year, supported by the recovery of consumption in China.
The agency also warned that the large production cuts announced by the producing countries in the OPEC alliance consisting of the Organization of the Petroleum Exporting Countries, OPEC and other producers led by Russia, may increase the shortage of oil supply and harm consumers.
And during Friday trading, according to Sky News Arabia, it rose Brent Crude Futures 22 cents, or 0.3%, when settling at $86.31 a barrel. US West Texas Intermediate crude futures were at $82.52 a barrel, up 36 cents, or 0.4%.
The two benchmarks recorded gains for the fourth week in a row, in light of calming fears of the banking crisis that occurred last month and the sudden decision to increase production cuts taken last week by the OPEC + alliance.
The International Energy Agency said in its monthly report, Friday, that global oil demand is set to rise by two million barrels per day in 2023 to a record level of 101.9 million barrels per day, driven mostly by strong Chinese consumption following lifting restrictions related to the Covid pandemic.
The agency added that the demand for aviation fuel represents 57% of the increase in demand in 2023.
But OPEC on Thursday pointed to the risks of lower oil demand in the summer due, among other things, to cut production by 1.16 million barrels per day.
In its monthly report, it said that the decision of OPEC + may harm consumers and the recovery of the global economy.
“Consumers facing inflation in the prices of basic items will now have to further stretch their budgets,” the agency said in the report.
“This has a strong impact on economic recovery and growth,” the agency added.
The agency stated that it expects a decrease in the global oil supply by 400,000 barrels per day by the end of the year, indicating an expected increase in production of one million barrels per day from outside OPEC +, starting in March, compared to 1.4 million barrels per day, which will be reduced by the producing countries in the group.
The dollar index is currently at its lowest level in nearly a year, following the release of consumer and producer price data in the United States this week, which reinforced expectations that the US Federal Reserve is nearing the end of the rate hike cycle.
But the US currency rose on Friday, which makes dollar-denominated oil more expensive for investors than holders of other currencies and thus affects demand.
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