Good News For Ouyahia's Government As Oil Price Nears $ 56

date 2017/09/16 views 1408 comments 0

icon-writer Sofiane.A / English version: Dalila Henache

Oil price maintains, on Saturday, for the third day in a row, its increase, and stays above the threshold of $ 55 a barrel, as it reached, before closing the deals, $ 55.55 per barrel for the Brent, in the North Sea index on the London Stock Exchange, up + $ 0.11, 0.20% for November's delivery.

Oil price per barrel at the New York Exchange for U.S Brant of West Texas Intermediate (WTI) reached $ 49.95 per barrel, up by $ 0.06.

The increase was due to the improvement of global demand expectations, economies of major consuming countries, the commitment of the exporting countries to reduce the production by 1.8 million barrels per day until next March, and the expectations of both the International Energy Agency and the Organization of Petroleum Exporting Countries.

Oil prices extended their increase in Saturday's session at the European session recording the fifth consecutive daily gain, which becomes the longest daily gain since last July. 

This rise comes from the growing ambition of higher global demand against the expectations of the International Energy Agency and OPEC, and the recovery of the oil industry in the United States, at the time when the US crude oil rose to $ 49.85 from the price of the opening session, which is $ 49.71, with a record of higher price for the barrel by $ 49.91, while the lowest price reaches $ 49.40, and the Brent crude also rose to $ 55.40 from the opening price to $ 55.23, as the highest price reaches $ 55.48 per barrel, while the lowest price reaches $ 54.85.

The relative recovery of the price of a barrel, which settled at $ 55.54 per barrel for the North Sea Brent and $ 49.96 a barrel for the West Texas Intermediate, is a good news for Ahmed Ouyahia's government, which is today coming to the National People's Assembly to present the government's plan of action.

Organization of the Petroleum Exporting Countries (OPEC) issued its monthly report this week and indicated that it raised expectations of global demand for its oil in the coming year, which may balance the forces of supply and demand in the markets and attributed to the impact of the agreement to reduce production levels. 

In the same context, the International Energy Agency said this week that the global demand rates are starting to rise, positively affecting the world supply surplus, and reducing OPEC production levels and independent producers will accelerate the re-balancing the markets.

OPEC raised its expectations for demands on oil this year to 1.6 million barrels daily of its forecast in August at 1.5 million barrels, and attributed it to the high demand in Europe and the United States.

This week, U.S. refineries returned to normal before Hurricane Harvey, and the United States' largest refinery, Motiva Intreprises, began operating normally on Monday after being closed for two weeks.

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