The drop in oil prices in American refineries pushed up Saudi crude purchases.
The International Platts Petroleum Agency announced that the agency expected that the volume of imports would reach about 1.5 million barrels per day during the last week of March, a sharp increase from 435 thousand barrels per day imported by the end of February and the beginning of March, representing an increase of 3.4 times.
Last weekend, it closed for the worst weekly performance since the global financial crisis in 2008, as Brent crude lost 25%, and American crude lost 23%.
He pointed to the rise in futures contracts after the announcement with Brent crude reaching 34.63 dollars a barrel, pointing out that the markets show great risks, as oil futures fell more than 20% from last Friday, after the market appeared to be on the verge of a significant increase in the abundance of production.
After the collapse of the OPEC + production cut agreement, the major banks lowered their forecasts for oil prices, expecting to increase supply dramatically in the market during the current stage.
It is noteworthy that Saudi Arabia pledges to increase the oil market supplies by about 2.6 million additional barrels of crude starting next April, while the UAE has pledged to provide an additional one million barrels; which will lead to a total increase of 3.6 million barrels per day in oil supplies from “OPEC” countries , At a time when global demand is declining sharply due to the outbreak of the new Corona virus.
It is noteworthy that oil prices are expected to remain at their current deteriorating levels for months amid efforts by all producers to win greater market shares, while the outbreak of the emerging Corona virus led to a wide weakness in the levels of oil demand.