Oil prices rise their losses and Brent falls to 93.6 dollars
Oil prices fell in early Asian trade on Thursday, on rising supplies and fears of a further slowdown in the global economy.
The imposition of restrictions to combat Covid-19 in China was also renewed again. Brent crude futures fell by about two dollars, to 93.64 dollars a barrel.
West Texas Intermediate crude futures fell $2 to $87.55 a barrel, Reuters reported.
The latest market volatility came on the heels of fears of insufficient supplies in the months following the Russian invasion of Ukraine.
At the same time, the Organization of Petroleum Exporting Countries (OPEC) is trying hard to increase production.
But production in OPEC and the United States increased to its highest levels since the early days of the Corona pandemic.
According to a Reuters survey, OPEC production increased to 29.6 million barrels per day last month, while US production rose to 11.82 million barrels per day in June.
Production in OECD countries and the United States reached its highest level since April 2020.
Factory activity in China continued to decline in August due to the imposition of new restrictions to combat COVID-19.
Among the reasons is also the country’s worst heat wave in decades, which negatively affects production, and this indicates that the economy is struggling to maintain its momentum.