“OPEC” prepares for two crucial months in the oil market … a gloomy atmosphere hanging over the global economy due to Corona


The losses of crude oil prices continued to bleed in light of the accelerated infections with the Coronavirus in most countries of the world, especially in Europe and the United States, and prices recorded the second monthly loss at the end of October, when Brent crude lost 10 percent and American crude 11 percent.
A gloomy atmosphere dominated the global economic outlook in light of the decline in consumption and increasing concerns about global demand for crude and fuel, while OPEC + prepares for two crucial months in the crude oil market by the end of this year, as all eyes are on the producers ’decision regarding the level of cuts applied next year. During an expanded ministerial meeting at the end of November.
In this context, the Organization of Petroleum Exporting Countries (OPEC) confirmed that the global economy has already come a long way in addressing this unprecedented global health crisis, but unfortunately we have not yet come out of the impasse, as there are still regional pockets around the world witnessing a return The emergence of infection with the approach of winter and the specter of renewed closure does not go out of the picture, pointing to the confirmation of Secretary-General Mohamed Barkindo that the expansion of the closure decisions will slow the process of the economic recovery in which we were seeing the return of oil demand to pre-epidemic levels.
The organization said in a recent report – on the results of the 14th high-level meeting of the energy dialogue between the European Union and “OPEC” -, “We must all remain vigilant and continue to search for a multilateral approach to address this epidemic,” noting that the full recovery of growth levels that were Prevailing in the pre-pandemic period may take time, and may only come about when stakeholders do their part to help restore economic growth.
She drew attention to the importance of potential financial stimulus measures that are being discussed by different governments as a way to neutralize the economic repercussions of this crisis, especially since the Corona pandemic wreaks havoc in the global economy and the oil market, which requires consultation with all concerned international parties, noting that there are many current and future plans for the energy dialogue. Between the European Union and “OPEC”.
On the global oil market, the report quoted Secretary-General Mohamed Barkindo as confirming that the fundamentals reached an unprecedented state of imbalance in the first half of the year as a result of the pandemic, especially during last April, indicating the widening concerns about a wider increase in the level of stocks Global oil, where demand witnessed an unprecedented free fall.
He praised the various measures taken to mitigate the impact of the epidemic, noting that “after the sharp contraction of the global economy in the first half of the year, the unprecedented monetary and financial measures around the world helped support the recovery in the second half, which is expected to continue until 2021.
The report pointed to Barkindo’s emphasis on the accuracy and importance of the decisions taken by OPEC member states and partners in the declaration of cooperation who provided an indispensable and stable platform to activate the partnership, evidenced by the success of the agreement on the largest and longest voluntary production adjustments in the history of modern oil production, which extends to April. (April) 2022.
He pointed to the possibility that global oil market conditions will witness a further recovery in the fourth quarter of this year until 2021, but uncertainty remains high, especially as the global number of infections continues to rise.
He pointed out that Barkindo expected global economic growth to decrease by 4.1 percent in 2020 and is expected to grow by 4.6 percent in 2021. In 2021.
The report stressed OPEC’s long-term commitment to support sustainable stability in the global oil market for the benefit of oil producers and consumers, as well as the global economy as a whole, adding that in an unprecedented crisis, OPEC + countries demonstrated their firm commitment to a stable oil market.
He pointed to the European Union’s proactive efforts in facing the health and economic consequences of this epidemic, noting that the European Union has cooperated closely with the energy industry in ensuring the security of vital energy supplies to stakeholders across Europe.
He noted the leadership role that the European Union continues to play in addressing climate change, pointing to OPEC’s call for a comprehensive solution to the dual challenge of access to energy and climate change, noting that there is no single source of energy that can meet the dual needs of poverty. Energy and future growth.
The report referred to the interest that OPEC + countries attach to support OPEC’s energy dialogues with global stakeholders, pointing out that the history of the energy dialogue with the European Union dates back to 2005 and is the first energy dialogue established by OPEC to provide a platform for cooperation between producers. And consumers.
He stressed that “OPEC” subsequently expanded its portfolio to include dialogues with China, India, Russia, and the United States, as well as with international organizations and global companies, returning that these dialogues contributed to enhancing mutual understanding on major energy issues while also supporting our joint efforts to face energy challenges, especially in light of The current epidemic.
The report pointed to the continuous efforts of OPEC and its partners in declaring cooperation to restore balance to the oil market and renew investor confidence in the energy industry, explaining that these cooperative efforts gave a vital stabilizing force in the oil market, and most importantly, they saved the industry from the near collapse in the wake of “Black Monday.” On April 20, he pointed out that it was one of the worst oil shocks in history.
He stated that the effectiveness of this global cooperation in the field of energy was praised at the highest levels of government and energy ministers in the Group of Twenty in the last April and September meetings. In addition, the industry benefited from the contributions of other producing countries that voluntarily or compulsorily stopped production.
He stressed the necessity of continuing consultations and discussions between all international parties concerned with discussing the situation of the oil market in the short and long term and examining the current situation of energy transition programs in light of the escalating epidemic crisis, in addition to issues related to energy policies, sustainability and energy security.
The report affirmed OPEC’s confidence that working with global partners will be able to overcome this enormous obstacle and move forward towards a more stable and predictable world, where the economy and energy markets can thrive again.
He pointed to the assertion of United Nations Secretary-General Antonio Guterres that there is no other way to deal with global challenges than joint and organized international responses in a multilateral manner, noting that among the shining examples of this multilateral approach is the declaration of cooperation now in its fourth year and the long-term cooperation charter that It changed the way the industry did business as it ushered in a new era in global energy cooperation.
On the other hand, with regard to prices at the end of the week and month, oil prices fell yesterday, and I suffered losses for the second consecutive month, as fears are simmering about the expectations of fuel consumption in light of the growing cases of Covid-19 disease in Europe and the United States.
Brent crude fell 19 cents, to settle the settlement price at $ 37.46 a barrel, after touching the lowest level in five months of $ 36.64 in the previous session. The contract for the nearest maturity of Brent crude was dissolved today, and the January contract closed down 32 cents.
US West Texas Intermediate crude fell 38 cents, to close at $ 35.79 a barrel, after falling to its lowest price since June (June) last Thursday, when it hit $ 34.92.
West Texas declined 11 percent over the course of the month, while Brent lost 10 percent, and oil prices fell during yesterday’s trading, with the dollar turning higher against most major currencies, but concerns about global demand as a result of the Corona crisis negatively affect the performance of crude.
And the company, “Baker Hughes” for oil services, announced that the number of oil rigs in the United States increased with ten rigs to 221 this week.
The number of people infected with Coronavirus worldwide has exceeded 45 million cases, forcing countries such as France and Germany to return to lockdown restrictions and impose isolation measures to contain the disease.
On the other hand, by 18:17 GMT, the dollar index (against a basket of major currencies) rose 0.1 percent to 94.04 points, and reached the highest level at 94.07 points, while the lowest level was recorded at 93.6 points.
In terms of trading, US Nymex crude futures for December delivery by 18:13 GMT fell 2.4 percent to $ 35.2 a barrel, and recorded the highest price at $ 36.6 and the lowest price at $ 35.2.
Brent crude for December delivery fell 0.7 percent to 37.3 dollars a barrel, and recorded the highest price at 38.1 dollars and the lowest price at 36.8 dollars.


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