In addition,
Oil sagged after abundant production:
Around 11:15 am, Brent ceded 0.29% to $ 65.93. Moreover, Its American equivalent, the barrel of West Texas Intermediate, lost 0.41% to $ 62.91. Therefore,
Oil prices retreat a bit on Wednesday. Moreover, weighted by monthly reports from the International Energy Agency (AIE) and the American Energy Information Agency (EIA) emphasizing the acceleration of black gold production.
The EIA “provides for a significant drop in oil prices because the growth of the global oil supply is more than more exceeded the growth in demand for petroleum products. Nevertheless, ” the report accompanying the report, published on Tuesday.
A reinforced opinion on Wednesday by that of the IEA. The agency has revised global growth in oil supply. citing the increase in quotas for the organization of oil exporting countries and its allies (OPEC+) as the main factor of this revision.
“In oil sagged after abundant production the past. we have noticed significant reduction in the price of oil when stocks increased as quickly as we plan for the coming months,” said Steve Nalley, acting administrator of the EIA.
On the growth of demand. opinions are shared, but even the more optimistic report of OPEC was not enough to convince the market that it would compensate for the increase in production.
Consequently, around 9:15 a.m. GMT (11:15 a.m. HEC), the price of Brent de la Mer du Nord for delivery in October, ceded 0.29% to 65.93 dollars.
Its American equivalent, the barrel of West Texas Intermediate, for delivery in September, lost 0.41% to $ 62.91.
In addition, the oil market remains cautious before the meeting between Donald Trump and Vladimir Putin on Friday.
“The situation is very unstable. with new statements that appear almost every hour,” said Arne Lohmann Rasmussen of Global Risk Management.
“The possibility of oil sagged after abundant production a diplomatic advance. such as the relaxation of sanctions on Russian oil, could increase the world supply and weigh on prices,” said Daniela Sabin Hathorn of Capital.com.
On the contrary. the analyst warns that the climbing of tensions could push the United States to tighten the vice on Russian black gold buyers such as India, and make prices increase.
Oil sagged after abundant production
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