Oil prices decreased to the lowest level in three weeks because of US production increases
On Friday the oil prices in the Europe market has back down to continue its losses for the fourth day respectively, record the lowest level in three weeks, and on it way to record the second weekly loss respectively, because the oil production in the United States continued it increases to the highest level in two years, and that’s making OPEC and the independent producers makes an effort to achieve the balance in the market as soon as.
At 8:45 GMT the American crude has backed down to 47.45 USD for the barrel from the opening level 47.95 USD and record the highest level 48.18 USD and the .lowest level since 10 of May 47.25 USD
Brent crude has decreased to 49.65 USD for the barrel from the opening level 50.18 USD and records the highest level 50.49 USD, and the lowest level since 10 of May 49.50 USD.
The American crude oil ended yesterday trading with a decreasing by 1.3%, in a third daily loss respectively, and Brent contracts “July delivery” has losses by 1.2%, with increasing the fears about the American production.
In the current week the oil prices have losses by 5%, and on its way for the second weekly losses respectively, because of the production acceleration in the United States, and production increased in Libya to the highest level since 2014.
The American energy information management issued yesterday decreasing in crude stocks in the country by 6.4 million barrels, for the week which ended in 26 of May, in the eighth weekly losses respectively.
According to this data, the total stocks achieved to 541 million barrels, and that’s the lowest level since the week which ended in 3 of last February, and that’s a positive mark for demand levels of the biggest oil consumer in the world improvement.
And about the American oil production, it increased the last week by 20 thousand barrels daily to the total 9.34 million barrels daily, and that’s the highest production level since August 2015, for a second weekly increase respectively.
With continue acceleration of oil shale production in the United States, and the international stocks stayed in the highest five years average, OPEC and the independent producers going to extend the international production decreasing deal last week by 1.8 million barrels for another nine months ended in March 2018.
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