Thank you for your reading after a historical collapse .. Oil is breathing and we assure you that we are always striving to satisfy you and now with details
Prior to that, the American President, Donald Trump, announced that the United States is seeking to purchase 75 million barrels to fill the country’s strategic oil reserves, after the American oil futures contracts turned to the nearest maturity, to passivity, for the first time in history with the full storage of crude warehouses, which is what Discourages buyers.
A world glut in supply
With the actual depletion of oil demand, a global glut has emerged in the supply, while billions of people around the world still need their homes to slow the spread of the Corona virus.
And US benchmarks for May delivery fell 55.90 (fifty-five nine-dollar intervals), or 306 percent three hundred and six percent, to minus thirty-seven dollars a barrel.
Brent crude futures fell more than nine percent, 9.2%, to 25.43, about twenty-five dollars a barrel.
It is noteworthy that the declines witnessed by US crude are a technical issue directly related to the end of trading in May delivery contracts on Tuesday, as evidence that US crude contracts for June are trading at $ 21, and therefore whoever buys oil as either refineries, or speculators, and those who sell what is in their hands.
Even as prices collapse, speculators are unable to hold on to their May delivery contracts, with large amounts of stocks piling up.
Deterioration in demand
In this context, the international oil consultant, Dr. Mohamed Sorour Al-Sabban, explained in a previous contact with Al Arabiya.net that “the oil markets have a large surplus between what is present as commercial stocks with American companies or floating stocks in seas close to the shores of the United States” .
He added that “this climate of oversupply coincides with the fact that the United States is suffering, like other countries in the world, from the severe deterioration that occurred in the global demand for oil, which was offset by a large supply of oil, and therefore it is evident that this surplus pressure on prices to decline Severe. ”
He also considered that “what the OPEC Plus coalition did is not sufficient to withdraw the surplus from the oil market, and it was supposed to join this alliance in reducing oil production by America, Norway, Canada and Brazil, but they have not yet done so and America has continued to pretend that its production will decrease in a way that Automatic, two million dollars, and this is not a pledge, and it is based on the assumption that the current prices of American oil will continue at the same pace until the end of the year. “
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