Oil prices give up gains and turn lower during trading

Mohammed Abdelkhalik
August 13, 2020

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Oil Prices – 13th August 2020

Oil prices retreated during Thursday’s trading, giving up the gains it had recorded earlier today, despite the dollar’s decline against most major currencies.

“OPEC” had mentioned in its monthly report expectations that global oil demand growth will contract by 9.1 million barrels per day this year compared to its estimate in July that global demand growth will contract by 9 million barrels per day.

Oil Prices affect OPEC agreement

Oil prices - 13th August 2020

Starting from this August, the agreement to reduce production from OPEC and its independent allies began in its new form, whereby production was reduced by 7.7 million barrels per day compared to the period between May and end of July during which production was reduced by about 9.7 million barrels per day. .

In terms of trading, US Nymex crude futures for September delivery by 16:54 GMT decreased by 0.9% to $ 42.2 a barrel, and the highest price was at $ 42.8 and the lowest price was at $ 42.1.

Brent contracts for October delivery fell by 1% to $ 44.9 a barrel, recording the highest at $ 45.5 and the lowest price at $ 44.9.

USD continues to decline

USD fell against most of the major currencies during trading on Thursday and maintained its losses in wake of the release of positive economic data in the United States.

And government data showed a decrease in the number of initial jobless claims in the United States to 963 thousand during the past week, while expectations indicated a decline towards the level of 1.120 million applications.

USD fell under the clutches of pressure in light of lack of agreement yet between leaders of US Congress, Democrats and Republicans, regarding the second fiscal stimulus package to face the repercussions of “Corona” virus on the largest economy in the world.

This and members of Federal Reserve warned of a continuing outbreak of Coronavirus in the United States and the possibility of a return to restrictions of closure and called on state governors to take more stringent measures to contain the disease.

In terms of trading, the dollar index fell (against a number of major currencies) by 18:02 GMT, by 0.3% to 93.2 points, and recorded the highest level at 93.3 points and the lowest level at 92.9 points.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.