Global oil prices fall again

The price of fuel oil in the world market has fallen again due to the decrease in China’s demand. China, the world’s largest importer of crude oil, has slowed economic activity and declined demand have had an impact on the global fuel oil market. According to the British news agency Reuters, oil prices fell twice in the world market in the second session on Monday. On the other hand, the head of Saudi Aramco, the world’s top oil exporter, has said that his company is ready to increase oil production.

Brent crude futures fell 89 cents, or 0.9 percent, to $97.26 per barrel (one barrel = 159 liters) in the global market. In the first session on Monday, us benchmark West Texas Intermediate (WTI) crude fell 82 cents to $91.27 a barrel. Earlier, in the first session, the price of this oil fell by 2.4 percent.

The oil market has been in recession since the Start of the Russia-Ukraine war in late February. According to data from various agencies monitoring the international oil market, the price of Brent crude oil in the world market has fallen by 13.7 percent and WTI price by 9.7 percent in the last six months.

China, the world’s largest importer of crude oil, saw an increase in production in June, according to official data. It was reduced in July due to the announcement of a new lockdown due to the coronavirus epidemic. China’s daily oil refining dropped to 12.53 million barrels in July due to an unexpected slowdown in economic growth. This is the lowest daily oil refining in the country since March 2020.

Heron Lin, an economist at Moody’s Investors Service, the world’s top credit rating agency, said chinese government data indicated that record oil prices were hampering domestic supply and consumer demand. Speaking to reporters on Sunday, Saudi Aramco’s chief executive Amin Nasser said saudi Aramco is ready to produce a maximum of 12 million barrels of crude oil per day if there is demand from the Saudi government.

“We are ready to produce 12 million barrels of oil a day at any time if there is a demand or request from the government or the ministry of energy to increase production,” he said. He said demand for fuel could increase as China eases coronavirus restrictions and resumes air traffic in full swing.

Production was disrupted in some offshore areas of the Gulf of Mexico as an oil pipeline was damaged. For this reason, the price of oil in the world market increased by more than 3 percent last week. A Louisiana official said some manufacturing companies had resumed their stalled production after repairing damaged pipelines in the Gulf of Mexico on Friday night.

The oil market has been in recession since the End of February when the Russia-Ukraine war broke out. According to data from various agencies monitoring the international oil market, the price of Brent crude oil in the world market has fallen by 13.7 percent and WTI price by 9.7 percent in the last six months.