Oil prices fell/Chinese krona disrupted the black gold market

According to the Fars International Economic Group, quoted by Reuters, since concerns about the recession and the worsening of the epidemic coronavirus In China, oil prices fell in trading on Tuesday, fueled by worries about a slowdown in demand for the country’s fuel, which outweighed worries about supply.

Brent oil was down 23 cents at $97.69 a barrel, and US crude was down 33 cents at $91.46 a barrel.

The price of both oil indices in trading on Monday due to the spread of rumors about the end of restrictions Corona In China, it reached the highest figure since August.

But the Chinese authorities announced earlier in the week that strict policies Corona They will continue. Recent statistics have also shown that the country’s exports and imports unexpectedly decreased in October.

Official statistics showed on Tuesday, the number of infected people coronavirus At GuangTheZhou China and other big cities of this country have increased drastically. GuangTheZhou As a manufacturing hub in the world, it is struggling with the worst situation it’s corona And he tries his ability to prevent the quarantine of this city like a wide quarantine Shanghai Prevent.

Stephen inesIn this regard, the oil market analyst said: “I think that increasing quarantines will not only disrupt the oil market, but also delay the reopening of the market and will continue to have a negative effect on oil prices. »

Also, strengthening the value of the dollar has been mentioned as one of the other factors affecting the decrease in oil prices. Oil is usually priced in US dollars from this side The rising value of the dollar makes this basic commodity more expensive for owners of other currencies.

Tina Teng, an analyst of CMC markets, said that market players are looking at the statistics of the US consumer index to get business leads.

Teng added: “Due to the high inflation rate and the increase in interest rates in most major countries, oil is still priced with the possibility of an economic recession in the world.”

This analyst added: “These factors, along with the decrease in demand for fuel in China, are the reasons for the drop in oil prices in the past few months.”

ANZ Bank research analysts believe that the factors affecting the oil market in the short term are incremental and focus on the return of supply-related issues and are waiting for the implementation of the Russian oil embargo by the European Union.

In response to Russia’s attack on Ukraine, the European Union has imposed an oil embargo on the country, which will be effective from December 5, and the embargo on oil products will also be effective from February.

U.S. crude oil inventories are expected to have risen by about 1.1 million barrels last week, a preliminary Reuters poll showed on Monday.

Institute statistics American Petroleum will be released tonight and Statistics The official of the US Energy Information Administration will also be released tomorrow.

According to the latest OPEC report, oil demand will reach 103 million barrels per day in 2023, which is 2.7 million barrels per day more than in 2022.

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