Oil prices have plummeted for several weeks as traders try to hold on tight to the economy and COVID-19.
Oil prices hit an average of $ 3.156 in July.
The average oil price in Texas on Wednesday was $ 2,794 compared to $ 2,812 in July. AAA reported $ 2.812 in Monday Texas, $ 2,726 in West Texas and $ 2.873 in East Texas on Wednesday.
Brent crude oil traded at $ 71 a barrel on the New York Markets for up to $ 67 a barrel in West Texas and $ 57 to $ 64 a barrel in Texas.
Oil barrels lost several dollars earlier this week, but oil reserves fell 3 million barrels in the United States to 432.6 million barrels, an average of 6% over the five-year period, according to the Energy Information Administration. (IAA). The EIA is expected to draw 2.2 million-barrels of gasoline stock and 600,000-barrel construction of medium-sized Dilata stocks.
“On Monday, oil broke the seven-day series of losses due to the high cost of the US dollar and pandemic. This week, as China Zero reported new COVID-19 infections, the mood began to improve with the help of the dollar.
Although this data indicates an increase in demand for petroleum products, analysts are closely monitoring these trends. Investors are trying to understand the impact of Delta alternatives on economic activity and demand for petroleum products.
“Prices for COVID-19 are still rising, and prices are still volatile because of the growing demand for oil and gas,” said OilPres.com.
The International Atomic Energy Agency (IAEA) has recently exacerbated the epidemic and reduced its demand for oil by an estimated 500,000 barrels per day. In the third quarter, IEA dropped 97.4 million barrels a day from 98.1 million barrels a day to global demand forecasts.
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Other companies, including the US Department of Energy and OPEC EEN, have not changed their oil forecasts since.
Oilprice.com also wrote in a statement to CNN that Commercebank analysts believe that the weakness in prices is more related to the psychology of market participants than any fundamental data breach.
Goldman Sachs also believes that demand will increase by the end of 2021. “While fluctuations may be low and the trend is no longer our friend, we believe that micro-sustained commodity stocks will fluctuate these macro trends as we move. Many markets, such as oil and metals, are pushing for new heights in this cycle, ”analysts said this week.
Alex Mills is a former president of the Texas Energy Producers Association.