Saturday , October 16 2021

Latest News – KAMCO: Oil prices sluggish after extension of production cuts 20 …

Price declines in oil prices will fall next year, according to investment company Kamco.

Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC) may extend the current production agreement until 2019. The kingdom also offered an immediate solution for producers of the solution to reduce oil production by 1 million barrels. Daily vs. October levels.

Oil prices fell in one of the longest declines in a row, with losses of 20 percent by the end of last week, compared to their highest levels in early October.

The decline stemmed from concern over short-term oil demand against expectations of weak global economic growth in the short term, as well as concerns about the increase in oil production and stock accumulation and currency weakness in the emerging markets in addition to the extended exceptions to Iran's recent sanctions.

Oil prices since the second week of October were turbulent, with Brent Oil falling nearly 7 percent in one day last week, its biggest daily decline in three years.

In its report, KAMCO noted that OPEC crude oil price reached $ 67 per barrel, down below $ 70 a barrel for the first time since mid-August and the lowest closing price in the last seven months.

Despite this decline, average oil prices in October showed a positive trend due to the rapid pace of increase recorded earlier this month.

Recent data showed an increase in total oil production with US production reaching record levels of 11.6 million barrels per day of Russia's production of 11.4 million barrels per day, while OPEC increased production by 430,000 bpd in October.

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