Arab Steel Summit
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Arab Steel Summit

Oil prices are creeping towards $90 per barrel

Oil prices came and approached 90 US dollars, supported by expectations, as the main producers maintain the suspended restrictions, in addition to increasing hopes that the Federal Reserve (the US central bank) will leave interest rates unchanged to the side and do not want.

Contracts for the fifth Brent November (November) increased 0.3 percent at 14:50 GMT, to about $ 88.83, while futures contracts for the fifth West Texas American rose on the morning of October (October) 0.5 percent to $ 85.90.

And now the slight rise in trading has begun after they ended last week’s conference at their highest levels in more than half a year, after falling in the previous two weeks.

Deputy Prime Minister Aleksandar Novak said on Thursday that he advised the Petroleum Exporting Volunteer Organization to comply with the Milo standards. Announcement An announcement detailing the increased discounts is expected to be issued this week.

Russia has already reduced its exports by 300,000 scenes per day in September after defending 500,000 scenes per day in August. It is expected that Saudi Arabia will voluntarily supply one million episodes per day until October.

Job growth gained momentum in the United States in August, but the unemployment rate rose to 3.8 percent and wage increases slowed, reflecting declining labor market strength and strengthening expectations that the Federal Reserve will not raise interest rates this month.

Meanwhile, Russell Hardy, CEO of Vitol, the world’s largest independent oil trading company, said on Monday that global oil supplies are expected to improve over the next six or eight weeks due to refinery maintenance, but supplies of high-sulfur crude will remain low

Hardy added, during the “APEC” conference, that the economies producing high-sulfur crude will remain in a better position than the economies producing low-sulfur crude, thanks to the cuts applied by the “OPEC Plus” group and the lack of sufficient quantities of high-sulfur crude for trading.

He continued, “Thanks to the (OPEC Plus) cuts, there is not enough supply (of high-sulphur crude) for all these refineries in India, Kuwait, Jazan, Oman and China.” He added, “They all want to buy high-sulphur oil, but it is not supplied by the West, but rather comes mainl
Hardy also said that Brent crude prices remained “stable” and ranged between $72 and $88 per barrel for about a year, adding that price volatility comes from the product market, not crude.

He continued: “The volatility comes from the products because the refining production capacity is very limited. “A lot of refineries closed during the Covid pandemic and the West does not have the capacity to manufacture the products it needs, while Russian exports are now heading to Asia.”


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