• US oil at the lowest level since 2009 43.57 dollars a barrel



    Because of oversupply and high inventories
    US oil at the lowest level since 2009 .. 43.57 dollars a barrel


    The decline in crude oil prices dominated in the world market at the beginning of the new trading week yesterday, at a time when observers considered that the market is currently affected mainly high level of stocks and the growing strength of the US dollar.
    Oils Specialists said The US stocks of crude oil production rates have risen to their highest levels in three decades, at a time when the United States is witnessing a decline in the demand shown by the rise in crude oil inventories to record levels.
    According to "Reuters", Brent crude fell yesterday to a price of about $ 54 a barrel, the lowest level in more than a month due to high global stocks and indices on the prospect of a nuclear deal with Tehran, Iran may be allowed to increase exports.
    Western powers hopes to allow Tehran to make concessions to reach an agreement in the nuclear talks this week after the world powers expressed its willingness to reach a compromise on the suspension of the sanctions imposed by the United Nations.
    Brent price delivery April $ 1.34 to $ 53.33 a barrel, the lowest level since early February, but recovered later to $ 54.20, up 47 cents.
    US crude down to $ 43.57 in early trade, its lowest level since March 2009 and then recovered to $ 44.50, and fell two decades over the past two weeks with the growing evidence that the glut of supply leads to a quick increase in stocks.
    He said to "economic", Peter Fenech competent oil, if stocks rise to record levels and the weakness of the storage capacity is causes the current decline in prices in parallel with the growth of the US currency's strength, pointing out that the market has not yet stabilized and it is difficult to return to the acute and previous ongoing declines stage.
    Fenech explained that the above factors was the impact is greater than stop American rigs, which many expected to lead to successive hikes seem to influence not fully reflected in the market so far in spite of the increasing number of rigs parked pointing to a report by the investment bank Goldman Sachs, which confirms the low numbers of rigsthe United States refers to the decline in US oil production in the second quarter.
    Fenech pointed out that the Baker Hughes oil services company reported that the number of companies operating in the United States platforms fell by 56 platform last week to 866 platform which he called Goldman Sachs an indication that the current number of rigs drilling leads to a slight decline in US production during the second quarter.
    Fenech said that the return of declines for crude oil prices will lead to increased pressure on the budgets of the producing countries and the production and investment plans of the companies, pointing to a report released by the World Petroleum Council confirms that the low prices will lead to reduced production and investment.
    For his part, he said, for "economic", Peter Traubman oil analyst, said oil investments facing a wide difficulties since the start of sharp declines in oil prices in June (last June), which led to the postponement of many private high new exploration plans cost, both in deep waterMother of rock and thus found a severe crisis facing many of the particular rock oil producers.
    Traubman added that the expansion of the storage during the last period that led to new lows after the arrival of stocks to its full potential, as reported to the economic and statistics diminished standby power to store the surplus oil as well as the continuation of the growing strength of the US dollar on the rest of the expense of other currencies.
    Traubman explained that the contraction of investment has become a reality because the oil price is now less than the level that allows companies to exploration and production in many places, and the return of the declines will be channeled back into favor consuming countries that represent those dips new support for their economies and cut bills energy consumption, has succeededChina, one of the largest consumers in the world to exploit falling prices through the formation of strategic oil stocks.
    Traubman pointed out that buyers of oil for the purpose of storage and arrived at the saturation and the inability to add new storage capacity, but later in the year, including reducing the need to import crude in the near term and thus weaken demand and lead to new price declines stage.
    And Dr. Ibrahim Ezzat, oil analyst, said the oil market is facing a real and radical change in the working system after the surge that occurred the entry of new producers and the variety of sources and heightened competition in consumer markets; so it is generally expected oil continued low levels with the possibility of gradual improvement in the coming months.
    He attributed the "economic", that the Organization of Petroleum Exporting well absorbed those variables and deal futuristic vision with market conditions; so he arranged a lot of producers conditions to cope with low levels of oil prices and focused organization to protect market share and fierce competition with producers from outside.
    Ezzat pointed out that the major features of the future plan for OPEC, according to responsible sources, it plans to spend more than $ 270 billion for the implementation of 117 oil project until 2018 and aimed at strengthening the petroleum industry and secure energy sources and to ensure the flow of supplies of crude oil to consumers and positive impact on the stability of the economyGlobal and ensure its growth.
    Ezzat added that the budgets of the Gulf countries and financial centers of the Gulf companies are still strong and able to absorb the shock of falling prices and move forward in their development programs, referring to the announcement finally Kuwait Petroleum International Company that investments in domestic and foreign refineries will not be affected by lower oil prices and the long-term the company's projectsare not affected by the events of progress.
    Societe Generale Bank estimated that global stocks rise an average of 1.6 million barrels a day and expect to accelerate the pace to 1.7 million barrels per day in the second quarter of the year, said Michael Wittner, oil analyst at Societe Generale, said oil markets have seen a new wave of weakness in the last week and we expect to continue.
    China took advantage of falling prices to form a strategic oil stocks, but analysts say it will not allow them to power a new extra storage, but later in the year, which reduces the need to import crude in the near term.
    It is known that the fears are growing of continued US stockpiles of crude oil to rise to record levels which pays stores to fullness causing new pressure on the oil sector in the United States, the largest consumer of oil in the world.
    The International Energy Agency has announced its forecast rise in oil production levels through 2015 in the United States, where the decline in the production of oil refineries failure and stop some of them from working in the reduction of the expected production levels in the United States, which was the main reason for the decline in crude oil prices by 50 percent of its value last year.


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