US crude oil’s prices dip below $100 per barrel

US Oil prices plunged in Wednesday’s trading, continuing the series of declines that began at the end of last week, in light of fears of a decrease in energy demand due to geopolitical tensions that threaten the global growth rate.

Brent crude futures fell to the level of $ 98 a barrel, down 8% from Monday’s levels, and US crude futures also fell to the level of $ 94 a barrel, with the beginning of trading in the US markets.

In its monthly report, “OPEC” maintained its expectations for the growth of oil supplies from outside the organization at 3 million barrels per day in 2022, but it remains subject to review and adjustment in the coming weeks due to political turmoil.

The organization said that the forecast for the growth of Russia’s oil production will not change at 960,000 barrels per day, noting that the expectations are subject to a high degree of uncertainty due to geopolitical tensions.

“The current events in Eastern Europe, along with the ongoing concerns about Covid-19, are significantly reshaping the global economy and its structure, at the short level, so global economic growth will be negative,” according to OPEC report.

The organization expects that the Russian war on Ukraine will lead to a strong impact on the global economy, and a strong rise in the prices of basic commodities.

The war also contributes to further bottlenecks to global supply and shipping chains, affecting global trade, and resulting in a decline in consumer and business confidence, not only in Europe but around the world.

According to the report, the estimates of Corona did not witness a material change from last month, with expectations of a limited negative economic impact of the Omicron mutant on the world during the first quarter of this year, taking into account the review of the possibility of the return of closures again, which affects economic growth and demand for oil.

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