• Oil prices fall more than a dollar with renewed doubts about the trade talks


    Osama Soliman from Vienna​

    ​Oil prices rebounded from their initial gains and fell more than $ 1 a barrel in trading yesterday, following the example of US stocks, due to uncertainty surrounding a trade agreement between the United States and China.​

    The market has also been hit by fears about abundant crude supplies in 2020, despite expectations that OPEC will extend production cuts at its meeting in early December to help avoid a new global glut.​

    According to "Reuters", crude contracts for global measurement fell Brent $ 1.24, or 1.96 percent, to $ 62.04 a barrel while crude contracts for US measurement of West Texas fell median $ 1.05, or 1.8 percent to $ 56.68 a barrel, by the time 16:40 GMT.

    The oil futures surged almost 2 percent last Friday after a statement by a US official great optimism about increased trade agreement between the United States and China, but concerns about crude supplies and put an end to the gains.​

    Specialists and oil analysts,told to the "Al-iqtsadiah", "The producers in" OPEC "and outside the preparations for a new round of negotiations after a few weeks, where these talks come in light of the widening challenges and difficulties in the oil market, especially in light of recent expectations issued by the International Energy Agency, which It confirms that the growth of oil supply in the next year maybe twice the growth in demand."​

    They added, "which leads to the expansion of abundance and oversupply and pressure again on prices taking into account the fact that the vast increases in supply will not be driven by oil-American rock, but there are broader increases from Brazil, Norway, and Guyana," and argued that the investment is able to recover through the discipline of capital, where some of the major oil companies to expand drilling operations aggressively to overcome the sliding industry and investment into the trap of recession.
    Robert Stehrer, director of the Vienna International Institute for Economic Studies, stressed that the pressures and uncertainties in the international economy did not lead to a new downward wave of prices, but on the contrary began the trading week on tangible gains due to strong optimism that a new agreement will end the escalating trade disputes between the United States and China and enhance the prospects global economic growth and thus the demand for crude oil.​

    He said that the producers in the "OPEC" and abroad apply successfully reduced production agreement by about 1.2 million barrels per day with the participation of 24 products, until March 2020, pointing out that most of the speculation tend to the benefit of the extension of the cuts for productivity include full months in 2020 while continuing to policies that seek to raise the level corresponding to the producers plans to cut production after a productivity rises in Iraq and Nigeria in recent months.​
    For its part, Naila Hnjstler director of the Middle East and Africa, said the Department of the Austrian Federal Chamber, "The market situation is constantly changing and there is a need for an ongoing review of the interactions of supply and demand, which is what the" OPEC "well."​
    Another part, Lucas Berterer confirmed an analyst at the company, "or EMF" Austrian oil and gas, that progress in trade negotiations is something positive to look forward to all parties to the market after everyone touching the results of the trade war between the United States and China has been and continues to have a significant impact on demand.​
    He stressed the need to not exaggerate expectations of curtailing the trade war, as the general assumption is that most tariffs will remain, although the possibility of a "partial deal" could suspend or delay the application of some fees.​

    He stressed the importance of strengthening oil investments despite the abundance of the likely next year, to secure supply in the long term, pointing out that something positive in the movement of investment that many energy companies, non-US tends to expand exploration areas that are prospects of high growth such as the Middle East regions Asia and the Pacific and Africa, which is now attracting more than US investment fields.​

    ​In turn, Moaha Kouassi, managing director of "Ojrkravc" International said, "The oil industry and the gas is able to meet all the environmental benefits and support anti-change efforts climate by raising efficiency," noting that investments in the fuel area of fossil will remain prosperous, as this the only fuel capable of fulfilling all the needs of development and keep up with the aspiration to raise private growth rates in the developing world.​
    ​For example, pipelines will remain the safest way to transport oil and gas, including railways and trucks, she said, stressing that the oil industry should be able to rise above misinformation about pipelines and enhance industry confidence and ability to adapt to environmental standards and development challenges.

    On the other hand, the basket of "OPEC" crude rose to 63.12 dollars a barrel last Friday from 63 dollars a barrel the previous day.
    The daily report of the Organization of Petroleum Exporting Countries "OPEC" yesterday, "The price of the basket, which includes the average prices of 14 crude from the production of member states of the Organization of the second consecutive rise, and that the basket earned more than one dollar compared to the same day last week, In which it recorded $ 61.98 per barrel "​

© All Rights Reserved for Asharqia Chamber