Oil prices fell at the beginning of weekly trading on Monday by 2.6 percent compared to the close of the Friday session amid weak global demand for crude.

On Sunday, Saudi Aramco reduced the official selling price of its key Arab Light crude to a premium of $1.50 per barrel above the regional index for February.

This compares to a premium of $3.5 for the current month, which is the lowest level since November 2021.

Aramco’s decision comes after weak spot price differences for Middle Eastern crudes due to China’s weak appetite and increased global supplies, according to an analysis published by Bloomberg earlier today.

By 11:46 GMT, futures prices for Brent crude for March delivery fell by 2.6 percent, or $2.15, to $76.56 per barrel.

The significant reduction in official oil prices by Saudi Arabia reinforced signs of weakness in the global oil demand market in major markets, led by China.

Saudi Arabia is the largest exporter of crude oil in the world, with a daily average of 6.6 million barrels compared to 7.5 million barrels per day in normal circumstances, but the Kingdom participates in the OPEC+ alliance agreement to reduce production.

Last year, oil recorded its first annual loss since 2020 as production expanded from outside OPEC+, and traders looked forward to a slowdown in demand growth, including from the main importer, China.

The post Oil prices decline 2.6 percent amid weak global demand appeared first on Move 2 Turkey.

The Organization of the Petroleum Exporting Countries (OPEC) said that the OPEC+ alliance meeting scheduled for November 26 has been postponed until the 30th of the same month.

This came in a statement issued by the organization on Wednesday.

The statement stated that the ministerial meeting scheduled for November 26 and the meeting at the technical level on the 25th of the same month were postponed until November 30.

The statement did not give any reasons for postponement, at a time when global oil markets are witnessing price confusion within the range of $79-$94 per barrel of Brent since the outbreak of Middle East tensions.

The coalition is currently implementing reductions in oil production by 3.66 million barrels per day, equivalent to 3.6 percent of global demand for crude until the end of 2024.

The post The OPEC+ alliance postpones its meeting to November 30 appeared first on Move 2 Turkey.

Crude oil prices rose at the beginning of weekly trading on Monday, driven by Russia’s announcement banning the export of fuel derivatives to most of its markets.

Last week, the Kremlin said that it would ban the export of fuel derivatives, especially (gasoline and diesel), in an attempt to reduce the prices of derivatives sold in the local market.

Despite being subjected to sanctions related to the crude and derivatives industry from the West due to the war in Ukraine, Russia is still a major global exporter of oil and gas.

In early trading today, futures prices for Brent crude for November delivery rose by 0.5 percent, or 46 cents, to $92.42 per barrel.

In the same direction, futures prices for US West Texas Intermediate crude for November delivery rose by 0.56 percent, or 50 cents, to $90.53 per barrel.

The rise in prices also comes at a time when global demand for crude oil has increased for several reasons, the most recent of which is the possibility of the Federal Reserve raising interest rates at a meeting to be held early next November, which means an increase in the strength of the dollar and an increase in its cost to importers.

This month, oil prices recorded unprecedented levels since November 2022, amid the extension of production cuts by members of the OPEC+ alliance and increased demand in Europe and Asia for diesel.

The post Oil prices open higher after a Russian decision appeared first on Move 2 Turkey.

Russia announced the extension of the decision to voluntarily reduce crude oil production by 300,000 barrels per day until it ends next December.

The previous decision was to end the voluntary reduction in crude oil production on September 30, which began at the beginning of this month.

Russian Deputy Prime Minister Alexander Novak said in a statement on Tuesday evening that his country decided to extend the reduction until the end of this year instead of the end of September to achieve greater stability in the global energy market.

He added that Russia will review the size of the voluntary reduction in oil production by increase or decrease on a monthly basis during the coming period, depending on the situation in the global market.

This reduction is in addition to the voluntary reduction in its oil production by 500,000 barrels per day, which began at the beginning of last March and ends in December 2024.

These two voluntary cuts do not include Russia’s share of the OPEC+ production cut, which was implemented at the beginning of last November and will continue until the end of 2024 by 500,000 barrels per day.

Yesterday, Tuesday, the Saudi Ministry of Energy announced the extension of the Kingdom’s voluntary reduction of one million barrels per day for another three months to include the period from October until the end of December 2023.

The previous agreement stipulated that the voluntary reduction would end at the end of this September.

The post Russia extends a voluntary reduction in oil production appeared first on Move 2 Turkey.

Crude oil prices rose in early trading, Monday, on the impact of China’s announcement of a stimulus package to stimulate the sluggish economy and with the continuation of the “OPEC +” coalition cuts.

On Sunday, the Chinese Ministry of Finance announced that the stamp duty on stock transactions will be cut in half, starting from Monday, to stimulate the capital market and enhance investor confidence.

By 08:00 GMT, Brent crude futures prices for November delivery rose 0.4 percent, or 34 cents, to $84.28 a barrel.

In the same direction, the prices of US West Texas Intermediate crude futures for October delivery increased by 0.6 percent, or 47 cents, to $80.30 a barrel.

China is the second largest consumer of crude oil in the world after the United States with a daily average of 14 million barrels and the largest importer of it by 10 million barrels per day.

These increases also come in conjunction with the continuation of mandatory oil production cuts by the “OPEC +” coalition, in addition to a voluntary cut from Saudi Arabia by one million barrels per day, which extends until the end of next September.

And last June, Saudi Arabia announced the implementation of a voluntary reduction in oil production by one million barrels per day, which began to be implemented in early July until the end of next month.

The post Oil prices go up with Chinese stimulus for the local economy appeared first on Move 2 Turkey.

On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) maintained expectations for global oil demand growth in 2023 at 2.4 million barrels per day, unchanged from the previous month’s estimates.

OPEC said in its monthly report on Thursday that it maintained expectations of growth in oil demand for the current year at 102.01 million barrels per day, an increase of 2.4 million barrels per day from 2022.

The agency estimated that global demand would increase to 101.96 million barrels per day in the third quarter, and then to 103.21 million barrels per day in the last quarter of the year.

According to the report, global economic growth was revised up slightly in both 2023 and 2024, to stand at 2.7 percent and 2.6 percent, respectively.

The report expected an increase in non-OPEC crude oil supplies by 1.5 million barrels per day in 2023, which is a slight upward adjustment from the previous one, and the United States, Brazil and Norway will be the main drivers of this growth.

It pointed to a reduction in the estimates of demand for OPEC oil in 2023 and 2024 by about 100,000 barrels per day, compared to previous estimates.

The report estimated that the demand for OPEC oil would reach 29.3 million barrels per day in 2023, and then reach 30.1 million barrels per day in 2024.

The production of OPEC members (13 members) decreased by 836 thousand barrels per day on a monthly basis last July to reach 27.310 million barrels per day from 28.146 million in the previous month.

The decrease in OPEC production came amid the decrease in the production of 4 countries, led by Saudi Arabia, which recorded a record cut by 968 thousand barrels per day last month to 9.021 million barrels per day, which is a voluntary cut announced in advance.

On the other hand, 9 countries increased their production last month, led by Iran, which increased its oil production by 68 thousand barrels per day.

The post OPEC maintains expectations of global oil demand growth in 2023 appeared first on Move 2 Turkey.

The US investment bank “Goldman Sachs” announced, on Monday, that it raised its estimates for Brent oil prices during the current year 2023, in the wake of members of the “OPEC +” coalition voluntarily cutting production, starting next May.

And the bank stated in a research note today that, according to the new estimates, “the price of a barrel of Brent by next December will reach $95, an increase of $5 from last March’s estimates.”

As for the price of a barrel of Brent in 2024, according to the bank, it will reach approximately $ 100, an increase of $ 3 over the estimates of last March.

Goldman Sachs said: “The production cut was surprising on the part of members of the coalition … it is consistent with the new OPEC + approach to act proactively.”

On Sunday evening, members of the “OPEC +” alliance announced a voluntary reduction in their crude oil production, starting from next May until the end of 2023, with a total of 1.66 million barrels per day.

This came in separate official statements issued by the countries of Saudi Arabia, Algeria, Iraq, the Sultanate of Oman, the Emirates, Kuwait, Russia, Gabon and Kazakhstan.

As a result, crude oil prices jumped at the beginning of weekly trading on Monday by more than 6 percent to an average of $85 per barrel of Brent.

The post “Goldman Sachs” raises its estimate of Brent oil prices appeared first on Move 2 Turkey.

The figures of the joint initiative for oil data, “Judy”, showed, on Monday, that Saudi Arabia’s exports of crude oil increased by 2.2 percent on a monthly basis last December.

According to the data released today, the Kingdom’s exports amounted to 7.44 million barrels per day last December, compared to 7.28 million barrels per day in the previous November.

Saudi Arabia is the largest exporter of crude oil in the world, although it is the second largest producer after the United States.

Saudi production fell 0.3 percent in December to 10.44 million bpd, from 10.47 million bpd in November.

And “Judy” is an international organization established by a decision of oil producers around the world in the early nineties of the last century, with the aim of collecting numbers and statistics related to oil production around the world and presenting them in the form of studies of interest to oil producers and consumers alike.

Last October, the “OPEC” alliance agreed to reduce production by two million barrels per day, starting in November 2022, which obliges Saudi Arabia to reduce its production to 10.48 million barrels per day.

The post Saudi oil exports rise 2.2 percent in December 2022 appeared first on Move 2 Turkey.

The Organization of the Petroleum Exporting Countries (OPEC) maintained expectations for oil demand growth in 2023 at the level of 2.2 million barrels per day, at the same previous expectations.

The organization said in its monthly report on Tuesday that it expects the average global demand for oil to reach 101.7 million barrels per day in the current year.

According to the report, the organization lowered demand expectations from the countries of the Organization for Economic Cooperation due to the economic challenges associated with inflation and monetary tightening in 2023.

OPEC raised expectations of demand from countries outside the organization, supported by the expected increase in demand from China after the abolition of Corona restrictions and the focus on economic growth, which supports the demand for fuel.

It also kept its forecast for demand for OPEC crude in 2023 unchanged from the previous estimate of 29.2 million barrels per day, which is an increase of 0.6 million barrels per day compared to 2022.

The post OPEC maintains expectations of global oil demand growth in 2023 appeared first on Move 2 Turkey.

Crude oil prices turned upward at the end of Monday’s session and morning trading on Tuesday, due to expectations of another cut in oil production by the “OPEC” alliance.

The alliance will hold a meeting on December 4 to discuss developments in the global oil market and expectations of demand for crude in light of the existing economic and health scenarios.

China is witnessing escalating closures, in light of the highest number of infections recorded this year with the Corona virus, which means that the demand for energy in factories is declining.

In today’s morning trading, Brent crude futures prices for February delivery rose 1.68 percent, or $1.40, to $85.30 a barrel.

US West Texas Intermediate crude futures for January delivery also increased by 1.51 percent, or $1.24, to $78.50 a barrel.

The global oil market is under pressure, despite the imminent embargo of Russian oil transported by sea, the outbreak of Corona in China, and fears that the global economy will enter a recession.

The post Oil prices are shifting upward due to expectations of OPEC production cuts appeared first on Move 2 Turkey.