oil
Moved oil prices In a tight range during trading on Thursday, as the influence of supply and demand forces remained convergent, oil moved slightly higher due to warnings from the International Energy Agency.
Oil prices now
Brent crude futures were up 0.22% to $ 92.66 a barrel and US West Texas Intermediate crude futures were also up 0.19% to $ 87.42 a barrel.
The main factors affecting oil prices
Oil has suffered significant losses since the beginning of this week, which prompted him to abandon the profits he managed to make last week due to OPEC + ‘s decision to reduce daily oil production by two million barrels.
These losses were driven by negative data in China, which showed a significant decline in economic activity, which pushed demand for oil to decline in the world’s second largest consumer of crude oil.
But the warnings from the International Energy Agency today provided some support for oil prices, but the rise in oil was marginal and limited due to China’s announcement of new epidemic restrictions in one of the its largest financial centers, Shanghai, which has limited oil gains with investors fearing the negative impact of these measures on the level of global demand for the ore.
And the International Energy Agency warned in its report today that OPEC + cuts will lead to a severe oil supply crisis, and consequently to a significant increase in its prices in light of the persistence of a high inflation, which could lead to increased tightening that will push the world into recession and reduce the demand for oil.
At the same time, the agency said that Russia’s oil supply is now 560,000 barrels lower than pre-war supply levels in Ukraine, which puts significant pressure on global energy supplies as supply from other members of the ‘OPEC grew by a much smaller amount of around 170,000 barrels per day.
The Energy Agency also indicated that high levels of oil prices would exacerbate volatility in the oil market and exacerbate energy security problems, as countries will not find enough to replenish their reserves.
The International Energy Agency has slightly lowered its oil demand growth forecast this year to 1.9 million barrels per day and 470,000 barrels per day in 2023 to reach 1.7 million barrels per day. ..
This comes after OPEC + on Wednesday lowered its forecast for daily oil demand growth this year by 460,000 barrels to 2.64 million barrels, citing China’s return to establishing rigorous epidemiological measures and inflation. high, and also lowered its forecast for oil demand in 2023 by 360,000 barrels per day to 2.34 million barrels per day.
The dollar’s decline also helped support oil prices as the dollar index fell sharply 0.24% today, erasing its early gains, to record 113.06 points.
