Oil prices down with expectations of increased supplies

Oil prices fell in early trading on Friday after rising recently, in light of profit-taking sales and expectations of increased supplies from Russia and Saudi Arabia, which overshadowed positive expectations about demand from China during the holiday.

According to Reuters, Brent crude futures for November, which expire on Friday, fell 21 cents to $95.17 per barrel.

Brent crude futures for December lost 10 cents to record $93 a barrel by 0055 GMT.

US West Texas Intermediate crude fell eight cents to $91.63 per barrel

Oil prices fell by about 1% on Thursday, as traders resorted to selling to take profits after prices rose to their highest levels in ten months, and some were concerned that rising interest rates might affect demand for oil.

National Australia Bank said in a note: “The OPEC meeting next week (October 4) will be an important indicator for the market, with the increasing possibility of a reduction in voluntary supply cuts by Aramco.”

The market is currently witnessing scarcity in light of reductions amounting to a total of 1.3 million barrels per day until the end of the year by Saudi Arabia and Russia, which are members of the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

Russia recently eased a separate ban it imposed on fuel exports to stabilize the domestic market, and analysts do not expect the restrictions to last for a long time because they may affect the operation of refineries (TADAWUL:2030) and affect relationships with customers.

JP Morgan said in a note that Turkey, Brazil, Morocco, Tunisia and Saudi Arabia are among the main destinations for Russian diesel this year.

He added, “Extending the export ban will negatively affect the relationship with new customers that Russian oil companies have painstakingly built over the past year and a half.”

The Kremlin said that Russia had not discussed a possible increase in crude oil supplies to compensate for Moscow’s ban on fuel exports with the OPEC+ group.