Oil prices fall to the lowest level in 6 weeks

Mohammed Abdelkhalik
November 18, 2021
Oil prices

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Oil prices fell during the trading session today in the European market to continue their losses for the second day in a row.

Thus recording their lowest levels in a month and a half, as prices were recently affected by the increasing concerns about supply in the market, especially after a report published on the US demand for oil.

Other large consumers such as China and Japan are considering a coordinated withdrawal of the strategic oil reserves in an attempt to cool high prices.

Oil prices are falling

Oil prices

At 09:55 GMT, West Texas Intermediate (US) crude fell by about 1.4% to the level of 77.11 US dollars per barrel, the lowest since the seventh of last October, from the opening level of today’s session at 78.22 dollars, and its highest price was at 78.41 dollars barrel.

The international crude oil “Brent crude” also fell by 1.1% to the lowest level of $79.30 a barrel in a month and a half, compared to the opening level at $80.18, and it reached the highest price at $80.20 a barrel early in the session.

At the close of trading yesterday, Wednesday, US crude lost 3.0% in the second consecutive daily loss, and Brent crude, the global price measure, recorded a loss of 2.6% in the first daily loss during the last three sessions.

The United States seeks to lower prices

According to a report by “Reuters”, in which it stated that the United States asked major global oil consumers such as China and Japan to consider a coordinated use of oil reserves in an effort to reduce prices.

The attempt by US President Joe Biden’s administration to shock the markets comes at a time when inflationary pressures are accelerating, driven in part by high energy prices, which represent a major obstacle to the continued recovery of the global economy from the negative repercussions resulting from the Coronavirus crisis.

The US Energy Information Administration announced in its official report issued on Wednesday that commercial crude stocks in the United States decreased during the past week ending on the twelfth of November by about 2.1 million barrels, in the first weekly decline in the last four weeks, and this came in contradiction to economic expectations. Which indicated a rise of one million barrels.

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.