Report reveals the causes of oil losses last March

Report reveals the causes of oil losses last March

 

4/13/2017 0:00

Capitals / follow-up
Said a recent report that oil prices fell to their lowest level in three months during last March was due to the glut of oil reserves, and rising US shale oil production, and not cut production, "OPEC" agreed pace
Previously.
He explained , "National Bank of Kuwait" through its monthly report issued on Wednesday, that the month of March saw a narrow breach of the border where the oil 's trading was limited, and prices plummeted to their lowest levels in more than three  
months.
By the end of March, Brent crude fell by 5 percent to $ 52.8 a barrel, while a mix of West Texas average fell 6.3 percent and closed at the price of $ 50.6 a barrel.
The Brent crude oil benchmark rose 0.5 percent to $ 56.54 a barrel at 7:57 GMT  
Greenwich.
The report revealed that the cause of the decline is due to doubts about the Organization of Petroleum Exporting Countries "OPEC" ability to achieve a real reduction in oil inventories , which is still inflated, especially with the US oil reserves rise to record levels for nine consecutive weeks, the return of the oil appearance  of
rock.
And confused markets when Saudi Arabia officially announced its lifting of crude oil production to 10 million barrels per day in February of that increase beyond January the previous production rate of 260 thousand barrels per day, a move that will fully compensate the shortfall that resulted from the reduction of other members of the production of the Organization of "OPEC" in their quest to comply with production quotas established in accordance with the Convention on the reduction  of
production.
Witnessing the pace of decline in global oil reserves a significant slowdown, as the gradual withdrawal process stockpiles of crude oil and petroleum products, which had gained momentum in the second half of the year 2016 had ended abruptly in January, and reached the stock then 48 million  
barrels.
This came to rise in the wake of rising US crude inventories at historic levels unprecedented, prompting a total of Economic Cooperation and Development ( OECD ) stocks to resume rising again surpassing the barrier of 3 billion barrels.
At the same time, the US production of shale oil will continue the remarkable recovery driven by high oil prices, as oil production came back to rise to 9.1 million barrels a day in March, a growth of 4.3
percent.
The report pointed out that the return of the prominent rock oil on the scene seems awkward especially for "OPEC" and its efforts in the inventory management  of the
world.
Aware of "OPEC" quite that high oil prices , thanks to efforts to reduce production represents an incentive to achieve additional profits for oil shale undermining US oil prices at the end  of the
day.

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