Oil prices has backed down from highest level in four weeks
On Tuesday oil prices has backed down for the first time since nine days, because of the recovery operations and collecting gains, after it record at the last time in the Europe market trading the highest level in four weeks, this became in the middle of the expectation to twice the trading because of the Independence Day holiday in the United States, and according to the first data in markets the OPEC production has increased to the highest level this year, with an acceleration in production in Libya, Nigeria and production increasing in KSA.
At 9:10 GMT the American crude has backed down to the level 46.90 USD for the barrel from the opening level 47.03 USD and record the highest level since 7 of June 47.10 USD and the lowest level 46.73 USD.
Brent crude is trading at the level 49.45 USD for the barrel from the opening level 49.51 USD and record the highest level 49.63 USD, and the lowest level 49.27 USD.
The American crude oil has ended yesterday trading with an increase by 1.6 %, in the eighth daily gain respectively, in the longest daily gain chain during this year, and Brent contracts have increased by 1.3% “August delivery”, and recorded the highest level in four weeks 49.69 USD for the barrel.
Oil prices have achieved an increasing by 7.4% last week, in a first weekly gain in the middle of the last May, in the biggest weekly gain since the last of November 2016, because of the decreasing in production in the United States.
The prices found the support from the decreasing in drilling rigs in the United States at the last week for the first time in 24 weeks, in a first direct reaction of the companies who work in the shale oil fields in the United States, and the losses in international markets of oil prices has increased lately, the shale oil cost consider as the highest comparing with the production cost in Russia and Arabian Gulf region.
The expectation for trading is to stay in a limited range, and a lot of traders are going to clearing centers before the Independence Day holiday in the United States.
According to the first data in the energy market, the OPEC production has increased by 210 thousand barrels in June to 32.54 million daily barrel, in a second monthly increase respectively, and this increase because of the acceleration in production in Libya and Nigeria, And increasing the production by 90 thousand barrels daily in KSA.
In Iraq, the oil minister Jabbar Allibi said that his country will continue in investment spending on the oil fields even if the oil prices have increased more than that.
And in Iran, the official news agency mentioned that the oil production in the country jumped to 3.9 million barrel daily during the month which started in 22 of May for the first time since removing the international sanctions on Tehran.
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