Oil prices are about to post a weekly loss due to US supply concerns
Global oil prices lost more than 2.5% in the European market on Friday, deepening their losses for the fifth day in a row, recording the lowest level in a week, and about to incur a weekly loss, the third in a month, due to escalating concerns about the US oversupply.
After the rise in crude stocks in the United States for the eighth week in a row, and pumping production at the highest level in about three years, in addition to the new decision about withdrawing from the strategic petroleum reserve.
And pressure on prices also, the wide rise in the levels of the US dollar, which makes the prices of commodities denominated in the US currency high cost for consumers of other currencies.
world oil prices
American crude fell by 2.6% to the level of $76.00, from the opening level at $78.06, and recorded the highest level at $78.22, and Brent crude declined by 2.7% to the level of $82.33, from the opening level at $84.60, and recorded the highest level at $84.83. .
When prices settled on Thursday, US crude lost 0.6%, and Brent crude fell by about 0.7%, its fourth consecutive daily loss.
In terms of trading this week, global oil prices are down by an average of 4.75%, about to incur a third weekly loss in the last month, due to fears of oversupply in the United States.
The US Energy Agency announced on Wednesday that commercial stocks in the country increased by about 16.3 million barrels during the week ending February 10, in the eighth consecutive weekly increase, exceeding experts’ expectations of an increase of about 1.5 million barrels.
According to this data, total crude inventories in the United States rose to 471.4 million barrels, which is the highest level since the week ending June 4, 2021, in a negative sign regarding demand and withdrawal levels in the largest fuel consumer in the world.
The US Energy Agency also announced the stability of oil production in the country without any significant change last week, bringing the total oil production in the United States to 12.3 million barrels, the highest level since the week ending April 10, 2020.
The US Energy Agency said earlier this week that it expects record production in March from the seven largest shale oil basins in the United States.
The US Department of Energy said it will sell 26 million barrels of oil from the Strategic Petroleum Reserve, with deliveries between April and June.
The strategic reserves of crude oil in the United States are already at their lowest level since 1983, after a record 180 million barrels were withdrawn last year.
The dollar index rose on Friday by more than 0.5%, to extend its gains for the third consecutive session, recording the highest level in a month and a half at 104.67 points, reflecting the broad rise in the levels of the US currency against a basket of major and minor currencies.
Strong economic data in the United States and more hawkish comments from Federal Reserve officials have boosted the odds that the world’s largest central bank will continue to tighten monetary policy and raise rates for as long as possible this year.