Al-Ittihad – Oil continues to rise from the lowest level in 3 weeks


TOKYO (Reuters)

Oil prices rose on Friday after touching the lowest level in three weeks in the previous session, in response to a record decline in US growth as the Corona virus afflicts the largest economy and consumer of oil in the world.
Brent crude rose 41 cents, or one percent, to $ 43.35 a barrel by 0702 GMT. Yesterday, Brent closed down 1.9 percent after touching its lowest level since July 10.
And US crude gained 43 cents, or 1.1 percent, to $ 40.35, after falling 3.3 percent in the previous session, rising from low levels not seen since the tenth of July. Brent is on track for fourth-month gains, as US crude heads towards its third monthly gain, and the benchmarks rose from lows in April when most of the world was in isolation measures.
But increasing casualties again and spreading around the world highlights the constant threat of oil demand.
The Organization of Petroleum Exporting Countries (OPEC) and its allies intend to increase production from today, adding about 1.5 million barrels per day to global supplies.
Globally, gloomier economic expectations have prevailed, as increased Corona virus infection raises the threat of renewed public isolation measures and threatens any recovery, according to a Reuters poll of more than 500 economists.
This was confirmed by news yesterday, Thursday, that the gross domestic product in the United States fell at an annual pace of 32.9 percent, the largest decline in output since records began in 1947.
In Germany, a record drop in output occurred, as Europe’s largest economy contracted by 10.1 percent on a quarterly basis in the April-June quarter.
Data from the Ministry of Industry showed on Friday that Japan’s oil imports fell by more than 30 percent in June to about 1.9 million barrels per day, while sales of oil products fell ten percent.


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