The dollar twice overcame the expanding scope of Corona’s limits in China, which reinforced concerns that the demand for fuel in China, the second-largest oil user in the world, would decline. Oil prices rose during Tuesday’s trading after falling in the previous day.
Costs of crude oil
By 14:25 GMT, the price of Brent crude futures for January delivery had increased by $1.47, or 1.58 percent, to $94.28 per barrel.
Yesterday, Monday, the price of a barrel closed down 1% at $94.83.
US crude futures increased $1. 6 to $88.13 a barrel.
With dealers anticipating the message that the Federal Reserve authorities (the US Central Bank) would send at the monetary policy meeting tomorrow, Wednesday, the US dollar dropped from its highest level in a week against a basket of its key rivals today, Tuesday.
US oil reserves
American oil production rose to nearly 12 million barrels per day in August, which is the highest level since the beginning of the “Kovid-19” pandemic, which caused pressure on prices, even with the declaration of shale oil companies that they do not expect production to accelerate in the coming months.
Following the OPEC Plus Group’s announcement that it would be cutting production by two million barrels per day, Brent and western Texas finished at an altitude in October, recording the first monthly gains since May.
OPEC raised its expectations for global demand for oil in the medium and long term on Monday, saying that investments worth $ 12. 1 trillion to meet this demand despite the transition to renewable energy sources.
Monday, US President Joe Biden urged oil and gas companies to use their standard profits to lower American costs and boost production, or pay a higher tax and devalue the dollar, making oil more affordable for holders of other currencies. This call typically reflects a greater desire for risk than the investor.
The Kofid-19 restrictions in China forced the closure of the Disney Resort in Shanghai on Monday, while the production of Apple iPhone phones in Apple in a large facility in China may decrease by 30% in November. “As China adheres to Safar Kovid, oil demand expectations have been overwhelmed by US oil exports data from last week and strict epidemic restrictions caused a decrease in factories activity in China in October. and reducing its imports from South Korea and Japan.
Today, Tuesday, November 1, 2022, oil prices
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