Monday , May 17 2021

Oil holds a bullish rally on OPEC cuts expectations



The future of oil There were extensive earnings from previous Friday sessions, in the middle of the hope of an agreement to break supplies at the OPEC meeting on December 6.

The energy market added its third day of earnings, although there were concerns about over-supply that has eliminated more than one fifth of the Brent prices since the beginning of October.

At 8:45 local time in Mexico, Brent's crackdown raises 2.18 percent to 68.07 dollars, although it is still on track for a weekly loss of around 4 per cent.

The West Texas Intermediate (WTI) crude oil future raises 1.8 per cent to trade at $ 57.49 bargain after suffering the biggest daily decrease in more than three years on Tuesday.

The WTI is about to close the week with a fall close to 5.3 percent, which would mean that the two benchmarks will star in its sixth consecutive weekly decline.

The prices of this Friday were supported by the expectation that the Petroleum Exporting Countries Organization (OPEC) will begin to reduce the pumping soon due to fear repetition of 2014 prices will be repetitive, although US production recording is pressed.

Although OPEC is considering retaining the supply, the United States crude oil production last recorded another week with 11.7 million barrels per day, according to data from the Ministry of Energy Information (EIA) issued on a day Thursday.

The US production has increased by almost a quarter since the beginning of the year.

Production of a record meant that the US raw stocks had the largest weekly collection in almost two years.

The raw stock lists increased by 10.3 million barrels a week to 9 November to 442.1 million barrels, the highest level since the beginning of December 2017.

This increase contributed to oil prices that fall around a quarter since the beginning of October, taking a lot of surprise.

Some analysts said there may be a long rise with the help of US penalties on Iran once the current exemptions expire, as well as the decline in production in Venezuela and uncertainty about the situation in Libya .

With information from Reuters, Notimex and Bloomberg.


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