Sunday , February 5 2023

Despite mentioning cuts in supply, Saudi Arabia continued to increase petroleum inventories


As Trump's Twitter price dropped, the negative atmosphere got worse. (Bloomberg Pictures)

Even Saudi Arabia's promise to cut exports was enough to stop the contraction of oil.

New York futures fell by a record low of 0.4% on Monday. Oil prices fell 2.5% on the back of a fall in the stock market, as President Donald Trump pressed for Twitter to criticize Saudi plans.

Josh Graves, senior market strategist at RJO Futures in Chicago, said, "Stocks and oil have fallen quite a bit.

As Trump's Twitter price dropped, the negative atmosphere got worse.

"This has stopped people from having a strong lobby to persuade the White House not to act in line with the OPEC proposal," said Bart Melek, Global Product Strategy Officer at TD Securities in Toronto.

Saudi Arabia has taken the lead in responding to a 20% price drop since early October. This reflects the US exemption that alleviates the impact of sanctions on the United States and the signs of the US surplus.

On the New York Mercantile Exchange, West Texas Intermediate for December delivery fell 26 cents to close at 59.93 dollars. Total transaction volume traded was 31% higher than the 100-day average.

Brent futures for January settlement closed at $ 70.12 on London-based ICE Futures Europe, down 6 cents. World benchmark crude oil was trading at a WTI of US $ 10.04 premiums in the same month.

Weaker demand

By reducing shipments in December, the world 's largest oil exporter can try to keep other countries behind. Iraq has increased production. As the economy is weak, it can upset the game. Meanwhile, Russian energy minister Alexander Novak said, "We do not want to concentrate purely on production."

Venezuela and the oil minister of Oman said they could share their production issues with Saudi, pointing out that the talks with Novak and Al-Falih and other producers did not bring about a formal change in supply policy, Strategy "may be needed. I cut it.

Other oil market news Gasoline futures rose 1.5% to $ 1.6367 per gallon. While OPEC members may reconsider the reduction in oil production they fear will cause oil prices to fall, the heartland producers in the Middle East are spending billions to increase production capacity in the long run. Rupiah has plunged to its lowest level in 20 years last month, pushing for a plan to reduce suffering as Southeast Asia's largest economy increases dependence on imported oil.

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