Oil prices are recovering from their lowest level in two weeks

Last Updated on August 8, 2021

Oil prices rose during the trading in the European market, to continue recovery operations from the lowest level in two weeks, recorded earlier in yesterday’s trading. But despite this rise, prices are still heading towards recording the largest weekly loss since last March, after an unexpected rise in commercial crude stocks in the United States, “the largest consumer of fuel in the world”, in addition to growing concern about the acceleration of the spread of the new strain “Delta”. From the Coronavirus and global demand, levels fell again.

Oil prices continue to recover

Oil prices

At 09:25 GMT, West Texas Intermediate (US) crude rose by about 0.8%, to trade the price of a barrel around 69.70 US dollars, from the opening level of today’s session at 69.12 dollars, and reached the lowest price at 68.90 dollars per barrel.

Brent crude oil price also rose by 1.1% to reach the level of $71.92 a barrel, compared to the opening level of $71.18, and early in the session recorded the lowest price at $71.08 a barrel.

At the conclusion of yesterday’s trading, US crude managed to achieve gains of 1.6 percent in the first daily gain during the last four sessions, after recording earlier its lowest level in two weeks at 67.63 US dollars a barrel, and Brent crude also rose by 1.4 percent, after recording a level 69.77 dollars a barrel, the lowest since the twenty-first of last July.

Tensions in the Arab Gulf region

Tensions between world powers and Iran have risen again after an oil tanker was attacked off the coast of Oman last week, and Tehran said it had nothing to do with the attack that killed two crew members.

Israel accused Iran of being behind the attacks, which led to an increase in tensions across the Israeli border and pro-Tehran forces in Lebanese territory, as Israeli planes bombed missile launch sites in Lebanon on Thursday, in response to the firing of two missiles towards Israel from the Lebanese border.

These events led to growing concerns about the safety of navigation in the Arabian Gulf region, and their negative impact on supplies from the largest oil-producing region in the world.

US inventory report

Official data of the US Energy Information Administration indicated on Wednesday that commercial crude stocks in the United States rose by about 3.6 million barrels over the (last week) ending on the thirtieth of last July, in the second weekly increase in the past three weeks, this came in contradiction to expectations. Economic, which indicated a decrease of about 3.2 million barrels.

According to these data, total US stocks have now risen to 439.18 million barrels, the highest in a month, which has renewed concerns about actual demand levels in the “largest oil consumer in the world.”

As for production levels, the administration announced the stability of US production last week without change, to remain at a total of 11.2 million barrels, and the United States is still the largest oil producer in the world.

 

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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