Doha: Both benchmarks showed the largest weekly percentage decline in about a month. This is mainly due to concerns that the recession may be approaching and cut off in response to demand at the beginning of the week. Brent fell 5.5% in the third week, while WTI fell 6.9% in the second week.
But after U.S. officials told Reuters that Saudi Arabia’s oil production is unlikely to see an immediate increase, will oil rise 2.5% on Friday and there is room for investors to significantly increase crude oil production in OPEC? I’m wondering.
Brent crude oil futures were settled at $ 101.16 a barrel, up $ 2.06. Meanwhile, West Texas Intermediate crude was settled at $ 97.59 a barrel, up $ 1.81. Meanwhile, the number of US oil rigs, an early indicator of future production, increased from 2 to 599 this week, reaching its highest level since March 2020, energy service company Baker Hughes said. rice field.
Libya’s oil director also said crude oil production would resume after meeting with a group that had closed the country’s oil facilities for several months. Bearish market sentiment is also following the outbreak of new COVID-19 in China, which is hindering a recovery in demand.
Meanwhile, analysts expect oil pressures to continue due to concerns over the global economy.
Spot liquefied natural gas prices in Asia remained high last week due to a recovery in summer demand in Asia and the uncertainty of resuming operations on the NordStream1 pipeline after maintenance was completed on July 21st.
Average LNG prices for delivery to Northeast Asia in August were estimated at $ 40.50 per million British thermal units (mmBtu), down $ 0.50 or 1.2% from the previous week, according to industry sources.
Although China has healthy storage levels, current heat waves are stressing power systems and may increase LNG purchases. According to analysts, Japan and South Korea are also expected to buy more LNG cargo for the summer. In Europe, gas prices in the UK and the Netherlands fell on Friday as Norwegian exports surged after the suspension, although concerns about future supply from Russia remain. The flow from Russia via the Nord Stream 1 pipeline remained closed for maintenance. Maintenance is scheduled to end on July 21, but market participants and the government are afraid that Moscow may extend maintenance. In the United States, Friday’s natural gas futures rose about 6% to a four-week high, due to lower production last week and forecasts of hotter weather and more demand over the next two weeks.