As the year 2023 ends, a dip in oil prices results in a decreased demand for Oil in China and the United States. The news came to the surface as Russia and Saudia Arabia announced that additional oil output cuts would continue until the end of the year.
As seen from the latest announcements by Saudi Arabia and Russia regarding the reduction of additional oil output until the end of this, the situation is seen to become tense amidst decreasing oil prices and demand for oil in China and the United States.
Market sentiments were seen to be dented by the declining demand for oil in China and the United States of America. Meanwhile, oil prices are seen to decline reversing the Friday rally, with the latest declining demand trends.
Given the current Israel-Gaza situation, there has been a major impact on the oil supply, demand, and pricing around the world. The investors have focused on the declining demand for oil in China and the United States of America, while their worries about the disruptions of supplies against the situation have loosened a little.
What role does the United States Energy Information Administration in Crude Oil Demand
Expected faltering demand in the coming days by the United States of America and China – United States Energy Information Administration in Crude Oil Demand
However, the issue remains there while Palestinians keep facing air strikes from Israeli armed forces. Furthermore, as per the weekly information updates from The United States Energy Information Administration, the production of crude oil is expected to rise in the United States gradually however, it will be less in comparison to the demand for crude oil in the fall.
On the contrary, there have been fears by the world’s largest importer of crude oil, which were expressed regarding the faltering demand in the coming days. In addition to the aforesaid, there has been a decline in the supply requirements of oil from Saudi Arabia by the refineries in China.
Despite the given situation, Saudi Arabia and Russia remain the top oil exporters in the world, and they have confirmed oil output cuts voluntarily until this year-end. The changing demand and supplies leading to a change in prices will be further discussed by the allies in a meeting of the Organization of Petroleum Exporting Countries by the end of this month, expected to be held on the 26th of November 2023.
Kuwaiti Crude Oil Price Surge – A jump from $1.42 to $91.55 was seen during the past week
Kuwaiti Crude Oil Price Surge – There are changes in demand and supply of crude oil, leading to changing prices.
The current jump in prices of crude oil in Kuwait is the result of the current global crisis or rather a much more dramatic situation involving Gaza, Israel, and the militant group Hamas. Great debates have been made as to which is playing the role of an oppressor or is the oppressed however, it has affected the world in many ways. The far-reaching effects cannot be nullified in a short time to come.
What are the impacts of the Current Global Crisis on the Prices of Crude Oil
Prices of Crude Oil change due to the Current Global Crisis
One of the major impacts evident from the current global crisis is the changes in prices, demand, and supply trends in various oil-extracting regions. As explained in one of the articles by Arabian Business there has been a dip in oil prices as a result of a decrease in demand for oil in the United States of America and the decrease in demand from the oil refineries in China.
The prices of Crude Oil extracted in Kuwait increased in prices from $1.42 to $91.55 per barrel, as presented by Kuwait Petroleum Corporation in their report on Wednesday. The sudden jump in prices was seen as a major change in the demand for crude oil, resulting in the current global situation between Israel and Gaza. The attacks of the Israeli armed forces on Gaza are seen to be major game changers in terms of geographical and political aspects.
The prices of crude oil in the international markets rose as the prices for West Texas Intermediate edged down by 41 cents settling at $85.97 per barrel as opposed to Brent Crude Oil which came down by 50 cents reaching $87.65 per barrel. The war premiums are going to be returned to the oil market which are expected to elevate the crude oil prices further to the top, in the coming days as per the industry analysts. However, the expected situation will be raising stability concerns in the Middle East.
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