Wednesday , October 5 2022

Why has oil worsened for more than three years?


Matt Egan

NEW YORK – Tuesday's drop in crude oil prices dropped on Tuesday.

US oil prices dropped by 7% on Tuesday to $ 55.69 per barrel. This raw material has been the most difficult since September 2015.

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Concerns over the growth of negligence in the oil world have caused concern. Crude oil has declined sharply for 12 days, the longest run since the start of the futures trading in March 1983.

"The distinctive sense of control over the oil market," said Klein Sigle, Managing Director of the Genscape Oil Company.

A major change took place in the beginning of October, taking into account the fact that during the four years of barrels for barrels rose to the highest level of oil.

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Last week, the bear market crashed and sales were accelerated. The efforts of Saudi Arabia have not even calmed down their nervous traders.

On Monday, the Kingdom announced its intention to reduce its shipments to 500,000 barrels per day. Saudi Arabia also said that it would support OPEC production cuts in Vienna next month.

Most of the worrying concerns Iran's sanctions. At the beginning of the trumpet management promised to reduce Iran's oil exports, American officials have adopted a soft approach to fearing the loss of energy markets. The Trump government has allowed China, India and other countries to continue to buy oil from Iran.

However, Saudi Arabia, Russia and the United States have increased production in recent months to prevent Iran's deficiency. The US production has risen to record levels under the shade of the shale in the Perm basin of West Texas.

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At the same time, concerns about the health of the global economy have left behind the stereotype of demand. Nearly half of the funds raised by Merrill Lynch, the American bank, are expecting the worst predictions for the next 12 months since November 2008.

"While the demand remains, there are concerns about trade wars, emerging markets and stronger dollars," says Michael Wittner, Societe Generale's Oil Research Director.

President Donald Trump also imposes Saudi Arabia and OPEC to continue production.

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"We hope Saudi Arabia and OPEC will not cut oil production," Twitter posted on Twitter on Monday. "Oil prices should be much lower than shipping!"

Seigle said Trump's pressure was an additional element of unexpectedness in the oil market.

"Former presidents walked with OPEC on eggplants," said Siddle.

Saudi Arabia is also recovering from the disputes over the death of Jamal Hashogi, a Washington Post journalist.

"Saudi Arabia can feel international disagreements," he added.

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