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Oil expert, analyst attributes fall in oil prices to 3 main factors: report

KUWAIT CITY, May 26: Oil expert and analyst Mohammad Al- Shatti attributed the fall in oil prices to three main factors, reports Al-Rai daily.

Al-Shatti in a statement to the daily said the first reason for the decline is the refining margins and the second is due to the rise in US oil reserves and the third factor is the trade war between China and the United States and the taxes imposed by each side on the other, which has impeded international trade, affecting the performance of the global economy.

Shatti said warnings have been issued by the International Monetary Fund on the global economy, and the possibility of the recession, which will affect the level of demand for oil, which can reach up to 300 thousand barrels per day, and thus decrease the growth rate from 1.2 million barrels per day for the year 2019 to 900,000 barrels per day, and therefore will affect the balance of demand and supply in spite of political threats, so the stock rises and this will dent the prices of oil.

Despite the fact that oil markets are still affected by the low production of Iran and Venezuela, the growing risk of falling production in Libya and the commitment of key OPEC countries beyond what is required in their agreement on production, the three factors remain more infl uential.

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