Agencies-Gaza post
Oil prices continue to decline as supplies increase
Oil prices fell in early Asian trade on Thursday, on increased supplies and fears of a further slowdown in the global economy, with the renewed imposition of restrictions to combat COVID-19 in China.
By 0006 GMT, Brent crude futures were down 37 cents, or 0.4 percent, at $95.27 a barrel. West Texas Intermediate crude futures fell 32 cents, or 0.4 percent, to $89.23 a barrel.
The latest market volatility came on the heels of fears of insufficient supplies in the months following the start of the Russia-Ukrainian war, and as the Organization of the Petroleum Exporting Countries (OPEC) struggled 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 in the United States reached its highest level since April 2020.
Meanwhile, factory activity in China continued to decline in August due to the imposition of new restrictions to combat COVID-19, the worst heat wave in decades and the faltering real estate sector, which negatively affects production and indicates that the economy is struggling to maintain momentum.
