NOURNEWS- Oil prices have fallen to $ 35.59 per barrel in trading today, amid concerns over the pace of improving demand for fuel, even though quarantine has been lifted in many countries, but tensions between the United States and China prevented a further fall in oil prices, according to Reuters.
Brent North Sea crude traded down 58 cents at $ 35.59 a barrel, and crude traded up 56 cents at $ 33.79 a barrel.
According to Fars, the countries exporting crude oil, OPEC and their allies called OPEC Plus, agreed to reduce their production by 9.7 million barrels per day from the beginning of May to the end of June, which is one of the reasons for the increase in oil prices in recent days.
With the quarantine of some states in US coming to an end, optimism for increased demand has been strengthened, but analysts have warned that improving demand is not as strong as expected. The Memorial Day holiday, which was a few days ago, was usually the beginning of the peak season for fuel demand in the United States.
Research department of ANZ Bank pointed out that "Preliminary estimates show that demand for gasoline is 30 percent lower than last year because people are still at home."
According to the Eurosia Group, some analysts predict that the balance will return to the market in June, but this view can be very optimistic.
"There is a significant risk of recurrence and quarantine. Even without this condition, some restrictions remain, especially in the aviation sector." as Eurosia Group stated.
As demand in the United States continues to grow, there are signs that reserves are declining. US oil reserves are expected to fall for the third consecutive week.
FARS
NOURNEWS