• High oil supported by hopes of an imminent trade agreement .. and Chinese data limits gains


    "Osama Soliman from Vienna​"

    Oil prices were recorded in trading yesterday by rises on hopes of a US, China trade agreement, but Chinese industrial data are weak as limit gains.

    Brent crude rose 26 cents, or 0.4 percent, to $ 62.28 a barrel by 13:37 GMT, and West Texas Intermediate crude rose 0.3 percent, or 20 cents, to $ 56.86 a barrel.

    Crude oil prices have been limited in response to geopolitical risks and have remained at moderate levels, according to oil analysts and analysts, pointing to the International Monetary Fund's assertion that global oil prices are undergoing relative separation from geopolitical tensions.

    They pointed out that the weak impact on prices or what is known as the risk premium has been and is still caused by a corresponding rise in the level of US shale oil production, as well as the escalation of trade disputes that weak global growth.​

    ​In this context, he said, for "economic" Ross Kennedy, Managing Director of "Q-HIV" energy services, some economic data from China led to declines price at the beginning of the week after renewed concerns about demand, especially that the expected breakthrough in US trade negotiations China has not yet materialized features although there was some optimism surrounding the market in the light of the possibility of concluding an effective agreement that will put an end to trade disputes, which escalated widely in recent weeks.​

    ​​He added that the current production cuts of the "OPEC +" coalition, which amounted to 1.2 million barrels per day and extends until March next year did not push oil prices to rise correctly to strengthen the budgets of most producing countries, some of which need prices around $ 80 a barrel.​

    For his part, explained to the "economist" Alexander Bogle, an analyst at the international energy company "GB Energy", that oil investments are still growing at a weak pace due to the environment of discouraging prices and uncertainty surrounding the global economy.

    He pointed to the decline of conventional oil and gas discoveries since the so-called shale oil revolution and the subsequent decline in oil prices, which led to the decline of investment to the lowest level in 70 years.​

    Dan Bosca, senior analyst at UniCredit International Bank, told "Al-Eqtisadiah" that crude oil, according to most international estimates, will continue to play a major role in the global energy mix.​

    He pointed out that the "OPEC" countries adhere to their international commitments to combat climate change, especially the Paris Agreement, despite the US president's doubts about climate change and his refusal to commit to reducing carbon emissions in his country and pushed for more use of coal and oil.

    Bulgarian analyst and energy researcher Andrei Yaniyev told the economist that deepening the proposed production cuts would undoubtedly help boost prices, especially with strong indications of a sudden drop in inventories, prompting prices to regain gains.​

    US energy companies cut the number of oil rigs operating this week, leading to a record 11-month decline as producers press ahead with plans to cut spending on new drilling.

    Russia's energy ministry said on Friday it was continuing close cooperation with Saudi Arabia, the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers to improve market stability and predictability.

    The OPEC + group, an alliance of OPEC members and other major producers including Russia, has been implementing an agreement to cut production by 1.2 million barrels per day since January.

    The agreement lasts until March 2020, and producers meet to review policy on the fifth and sixth of December.

    The daily report of the Organization of Petroleum Exporting Countries "OPEC", said yesterday that the price of the basket, which includes the average prices of 14 raw materials produced by the Organization of the Petroleum Exporting Countries achieved its fourth consecutive rise, and that the basket gained about two dollars, compared to the same day last week of $ 60.06 barrel​.


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