Oil prices continued to decline on Wednesday, recording the largest monthly decline in three and a half years after Saudi Arabia indicated its movement towards producing more and expanding its share in the market, while the global trade war has decreased expectations for demand for fuel.
At the end of Wednesday’s trading, Brent crude futures decreased by 1.8% to $ 63.12 a barrel. The US West Texas Intermediate crude futures decreased by about 4% to $ 58 a barrel.
Brent crude has decreased 15% and West Texas Intermediate crude 18% since the beginning of this month, which is the largest decline in the centenary since November 2021.
The two standards decreased after Saudi Arabia, one of the largest oil producers in the world, decreased that it is not ready to support the oil market by further reduce supplies and that it is able to deal with low prices for a long time.
“This raises fears that we are heading towards a new production war. Are the Saudis trying to send a message that they will recover their market share?” Said the chief analyst at the Price Fillen Group.
To wait and see. “
Saudi Arabia urged this month to increase more than its plan in OPEC Plus in May.
Sources told Reuters last week that a number of OPEC Plus members would propose to raise production increases for the second month in a row in June. On May 5, the group will meet to discuss production plans.
Trump fee effect
US President Donald Trump announced the imposition of customs duties on all US imports on April 2, and China responded with reprisals, which sparked a trade war between the two largest oil consuming countries in the world.
Fears of the global economy have continued to pressure oil prices.
Today, Wednesday data showed that the American economy shrinks in the first quarter of this year, under the flow of imported goods brought by companies to avoid high costs.
Analysts estimate that the customs duties imposed by Trump on imports to the United States have increased the possibility of the global economy sliding this year.
A survey published its results today showed that the activity of factories in China was shrinking in April 16 months.
Data revealed on Tuesday that the confidence of American consumers fell to its lowest level in almost five years in April as a result of increasing concerns about customs duties.
The decrease in US crude oil stocks (unexpectedly) was lowered last week, supported by high exports and the request of refineries, to decline in oil prices.
The US Energy Information Administration announced today, Wednesday, that crude oil stocks decreased 2.7 million barrels to 440.4 million in the week ending April 25, compared to the expectations of analysts in
Reuters poll with a height of 429 thousand barrels.
