Oil prices are losing more than 5% to hit the lowest level in 3 months

Mohammed Abdelkhalik
September 8, 2020

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Oil Prices – 9th September 2020

Oil prices expanded their decline with the opening of the US market on Tuesday to lose more than 5%, in the process of incurring the fifth daily loss in a row, registering the lowest level in about three months, due to fears of demand in the United States at the summer end holiday season, in addition to the Kingdom Saudi Arabia reduces crude export prices to Asia and puts pressure on prices as well as the decline in imports of crude to China.

Oil prices fell about 5.4% to $ 36.99, its lowest level since June 16, from the opening level at $ 39.11, and recorded the highest level at $ 39.30, and Brent crude fell by more than 4.7% to $ 40.12 per barrel, the lowest level since June 29. , From the opening level at $ 42.07, and the highest level at $ 42.20.

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Oil prices - 8th September 2020

US crude lost 0.9% at yesterday’s settlement, and Brent crude futures fell 0.7%, the fourth consecutive daily loss.

A Reuters analysis showed that Coronavirus cases increased in 22 US states due to the celebration of Labor Day in the United States.

The long weekend also coincided with the summer ending, which is the peak driving season in the United States, which means a decline in the levels of demand for fuel in the largest consumer in the world.

Oil prices decline after Saudi Arabia decision

The Saudi Arabia Kingdom, has lowered the official price for selling light crude to Asia in October, by the largest amount since last May, is an indication that Asian demand is still weak, and it also reduced the prices of exporting crude to the states. United for the first time in six months.

This Saudi move enhances the possibility of a global price war between major producers, especially since Asia is the largest oil import market in the world.

In China, according to data from the General Administration of Customs issued yesterday, Beijing slowed oil purchases in August, after imports hit record levels in July.

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.