Oil prices has back down in the European market on Wednesday to continue the decline for a second day in a respectively, due to renewed fears of global supply, especially after the increase in production in Libya and expectations of continued acceleration of oil production in the United States, which is expected to adversely affect the process of restoring balance in the market, And undermines the efforts of OPEC and independent producers to achieve this balance.
at 09:21 GMT, the American crude has back down to the level $ 48.85 USD for the barrel from the opening level of 49.56 USD, recording the highest level 49.69 USD and the lowest level 48.76 USD.
Brent crude has back down to the level $ 50.95 USD for the barrel from the opening level of 51.80 USD and recorded the highest level 51.91 USD and the lowest level 50.84 USD.
the American crude oil lost 0.8% in the first loss during three days, and Brent contracts “July contracts” has decreased by 0.7% due to higher drilling platforms in the United States.
Oil prices lost 2% last week after the market failed to digest OPEC and independent producers’ agreement to extend the global production cut by 1.8 million barrels per day until March 2018, and there were hopes about a longer extension of the agreement or deepen the reduction amount.
on Monday Libya’s national oil company said that oil production in the country would rise to 800,000 thousand barrel daily this week, and production in April reached 700,000 thousand barrel daily and that the highest level since late 2014.
In the United States, production is expected to rise for the second week in a row, especially as drilling platforms continue to rise in the oilfields, and US production reached 9.32 million barrels in the week ending May 19, the highest level since August 2015.
As production in Libya rises and production in the United States accelerates, the fears about the global supply inflation are renewed, which has been the main reason for the collapse in oil prices since mid-2014.
The Goldman Sachs Group this week cut the outlook for world oil prices this year. The group cut crude oil prices expectation to 52.92 USD for the barrel from 54.80 USD and Brent crude has decreased from 56.76 USD to the 55.39 USD.