Low oil prices … Brent nears $45 level

Oil prices decreased today, Friday, but is on track to achieve gains for the second week in light of the growing confidence that demand for fuel began to rise despite the Corona virus pandemic that is wracking economies around the world.

By 01.38 GMT, Brent crude was down 17 cents, or 0.38%, to $ 44.79 a barrel, and US West Texas Intermediate crude fell 16 cents, or 0.38%, to $ 42.08 a barrel.

Prices were boosted this week by US government data that showed inventories of crude oil, gasoline and distillates decreased last week, while refiners intensified production and improved demand for petroleum products.

However, the International Energy Agency lowered its forecast for oil demand for the current year, and said that the decline in air travel due to the Covid-19 pandemic will reduce global oil consumption this year by 8.1 million barrels per day.

The Organization of the Petroleum Exporting Countries (OPEC) said earlier this week that global oil demand will likely decrease by 9.06 million barrels per day this year, a decline that exceeds the drop of 8.95 million barrels per day the organization had expected a month ago.

OPEC Plus discounts

OPEC and allies including Russia, in what is known as the OPEC + group, have reduced production since last May by about 10% of global demand to address the implications of the global health crisis.

Last month, the OPEC + Joint Ministerial Monitoring Committee decided to reduce oil production cuts from this month to about 7.7 million barrels per day until December 2020, compared with 9.7 million barrels per day in previous cuts. The Ministerial Committee advises OPEC +.

Meanwhile, Russian Energy Minister Alexander Novak said that he does not expect quick decisions on production cuts when an OPEC + oversight committee meets next week, according to Russian news agencies on Thursday.

Novak said that there were no “additional” proposals to amend the agreement between OPEC + producers, according to the agencies.

He added, “I think that no one is proposing any hasty steps or additional proposals .. The market is almost stable and we are witnessing a gradual balance.”

The Joint Ministerial Committee is scheduled to meet next week against the backdrop of the oil price recovery to above $ 45 a barrel after hitting its lowest level in 21 years at $ 16 a barrel in April 2020.

Novak said the meeting could be postponed to August 19 instead of August 18, which is the initial planned date.

SOURCE: attaqa.net