Saturday , October 23 2021

Oil is still falling and is headed for a 10% drop in the week



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Oil prices fell on Friday, deepening losses by 10% in a week as investors prepared for a break for the holiday season.

Brent's benchmark barrel fell 47 cents, or 0.86 percent, to $ 53.88, while crude oil in the United States fell 19 cents, or 0.41 percent, to $ 45.69. barrel

Crude oil and other markets declined due to investor concerns about the health of the global economy when to start a new year. Concern has been heightened by the possibility that the United States, the world's largest consumer of crude oil, will suffer paralysis from the government on Friday if it fails to reach an agreement to release federal funds.

Since reaching several-year highs in early October, both oil benchmarks have lost more than a third of their value, the worst of them in three years.

One of the reasons is the sustained oversupply before the emergence of The United States as the world's largest producer of crude oil thanks to the success of its shale industry.

The United States is currently pumping 11.6 million barrels a day (bpd) of crude oil, surpassing Saudi Arabia and Russia.

The main oil producers of the Organization of the Petroleum Exporting Countries (OPEC), dominated by the Persian Gulf states in the Middle East, which rely heavily on energy exports, have agreed to reduce production to try to stimulate prices.

But cuts agreed by OPEC and other producers, such as Russia, of 1.2 million bpd will not go into effect before January and, meanwhile, stocks are rising rapidly.

In an effort to show commitment to supply reduction, OPEC plans to launch a chart detailing cut production quotas for its members and allies such as Russia, OPEC Secretary-General Mohammad Barkindo said in a cover letter Reuters

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