Oil prices continue to rise after falling from a four-year high

Oil prices continue to rise after falling from a four-year high
Oil prices

Oil prices rose on Friday in the European market in a narrow range of trading, in an attempt to resume gains after falling from a four-year high in yesterday's trading session due to correction and profit taking, nearing the record of the fourth weekly gain respectively, and this rise The recent price has come as the market continues to focus on the potential shortfall in Iran's oil supplies after the US sanctions against Tehran begin next month.

US crude rose to $ 74.85 a barrel from $ 74.61 opening at $ 74.91 and a low of $ 74.60 by 7:45 GMT.

Brent crude was up $ 85.01 a barrel from the opening level of $ 84.94 and a high of $ 85.11, while a low of $ 84.81.

US crude closed yesterday, down 2.1%, marking its biggest daily loss since August 8, as a result of the correction and profit taking after recording a four-year high of 76.88 US dollars a barrel , And Brent contracts were down 1.3% after recording earlier trading at 86.73 US dollars a barrel, the highest since November 2014.

On the week, global oil prices soared 2.25% to close their fourth straight weekly gains, the longest weekly gain since April, as the market continued to focus on the potential shortage of Iranian oil supplies. US sanctions on Tehran at the beginning of next month.

As the deadline for compliance with US sanctions on Tehran approaches on November 4, Iranian oil customers are increasingly reducing their purchases as the UAE cut its purchases of Iranian oil by half in September.

A number of important data for Bloomberg showed that crude oil shipments from Iran, OPEC's third-largest oil producer, dropped to 1.72 million bpd in September, a drop of 260,000 bpd compared to the same month last year.

The total of exported Iranian crude last month was the lowest of Iranian exports since February 2016, especially as the major Asian countries continued to respond to US demands to stop the import and reduction of Iranian oil, led by South Korea and Japan, and India has begun to reduce its purchases of Iranian crude.

With the US sanctions coming into force starting next November, Iran's oil supplies will be further reduced, leading to supply shortfalls in the market, so the United States is trying to compensate for the potential shortfall, whether by domestic production or by pressing OPEC and Russia to increase production. And lower prices.

US investment bank Jefferies said Friday that Brent crude prices rose by 6 percent last week as it became increasingly clear that Iranian exports could fall below 1 million bpd in November.

On the other hand, Russian President Vladimir Putin said that the sanctions imposed by the United States on Iran are the main reason for the current rise in oil prices.

Earlier this week, Saudi Arabia and Russia signed a special agreement to increase oil production to work to halt price rises before consulting producers within the Organization of Petroleum Exporting Countries (OPEC) and independent producers from outside, the Reuters news agency said earlier this week.

Saudi Oil Minister Khalid Al-Falih said in Moscow on Wednesday that OPEC's largest oil producer is currently pumping about 10.7 million barrels per day (bpd), close to record production and record levels in November 2016.

In the United States, the US Energy Agency said in its weekly report on Wednesday that the country's crude inventories rose by 8 million barrels in the week ending September 28, the biggest weekly gain since March 2017, To a rise of 1.1 million barrels, in the second consecutive weekly increase.

According to the data, total US trade inventories rose to 403.9 million barrels, the highest level of stocks in the last five weeks, in a negative sign that weak demand levels in the world's largest oil consumer.

As for US production, the agency reported production stability over the past week with little change to remain at a total of 11.1 million barrels, the highest level of US production ever.

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