Updated: oil falls 5% upon settlement, with geopolitical concerns calm

[Pitcher]

https://oilprice.com/Latest-Energy-News/World-News/Exxon-Shuts-Major-Texas-Refinery-After-Flooding.html
 

Exxon Shuts Major Texas Refinery After Flooding

By Tsvetana Paraskova - Sep 19, 2019, 6:00 PM CDT

ExxonMobil started on Thursday morning to shut down its 369,024-bpd crude oil refinery at Beaumont in Texas as tropical storm Imelda brought flooding to parts of southern Texas, sources familiar with Exxon’s refinery operations told Reuters on Thursday.

The Houston and Galveston areas and southeast Texas were bracing this week for the tropical storm Imelda which moved inland from just south of the coast where it had formed in the Gulf of Mexico. Imelda made landfall on Tuesday afternoon near Freeport, Texas. As it moves inland over Texas, some areas in southeast Texas were warned they could face “life-threatening flash flooding” as the now tropical depression Imelda dumped 20 inches of rain in some parts.  

Earlier on Thursday morning, the U.S. supermajor shut the chemical plant at the Beaumont petrochemical and refining complex, also due to the flooding from Imelda, Exxon’s spokesman Jeremy Eikenberry told Reuters.

Sources told Reuters then that Exxon was getting ready to begin shutdown of the refinery at the Beaumont complex.

Tropical storm Imelda formed just south of the Texas coast and didn’t move in the Gulf of Mexico to warrant shutdowns of platforms of oil operators in the Gulf.

In early July, Exxon, Chevron, Anadarko, BHP, and Shell evacuated staff from many platforms in the U.S. Gulf of Mexico ahead of the passing of tropical storm Barry.

A week later oil and gas producers began to slowly restore oil production that had shut in as much as 73 percent of the oil production in the Gulf.   

Phillips 66 had temporarily closed down its 253,600-bpd Alliance, Louisiana, refinery ahead of the storm Barry, while most of the Louisiana refineries of major operators were operating normally, refinery officials or sources told Reuters at the time.

[Pitcher]

Just east of Houston there are many petroleum plants and refineries.  We got hit with as much as 43 inches of rain in a 30 hour period.  We are experiencing major flooding again ( 2 years ago Hurricane Harvey devastated Houston).  I live north of Downtown and we only got about 12 inches of rain and no flooding.  Unfortunately all our runoff goes east and south.  The refineries will probably be ok but the roads to them are underwater.  Exxon is on Interstate 10 and large parts of it are flooded so no one can get to work for a few days

 

Say a prayer for the folks east of Houston. I’ll be out tomorrow helping my sister whose home had 6 inches of water in it.  Terrible deal.  

[yota691]

Oil prices rise to 1% on fears of supply shortages in Saudi Arabia

Date of editing:: 2019/19/19 23:50 • 201 times read

Oil prices rose more than 1 percent on Thursday on fears of a supply shortage longer than expected in the wake of attacks on oil facilities in Saudi Arabia over the weekend and mounting tensions in the Middle East.

Brent crude was up 80 cents, or 1.3 percent, at $ 64.40 a barrel.
US West Texas Intermediate (WTI) crude futures ended just two years higher at $ 58.13 a barrel after giving up earlier gains.
Saturday's attacks cut nearly half of Saudi Arabia's crude production and sharply restricted the country's spare capacity, a cushion used by oil markets in any emergency supply disruption. Tensions escalated as the United States and Saudi Arabia blamed Iran for the attacks.
"The Saudi oil industry could be threatened again and we may see more supply disruptions" from the Gulf region, said Jane McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.
He said markets were waiting to see how the United States and Saudi Arabia would respond to those attacks

[yota691]

Russia after talks with Saudi Arabia: No change to the oil deal

Archive image

 19 September 2019 08:48 PM

RIYADH - Russia said there was no change in the agreement to reduce oil supplies in the coming period based on talks with Saudi Arabia .

Russian Energy Minister Alexander Novak said on Thursday he had held talks with his Saudi counterpart on Wednesday, noting that no decision had been taken to amend the global oil agreement between OPEC and its allies, according to Reuters .

Alexander Novak said that the global oil market is currently in a state of stability, following a surge in crude oil due to supply concerns occurred in conjunction with the attack on two oil plants belonging to Saudi Aramco earlier this week .

"Oil markets are now calmer than they were on Monday, " Novak said .

Saudi Aramco was hit last Saturday by a terrorist attack that reduced crude oil supplies by 5.7 million barrels, representing nearly 50 percent of the company's production, according to previous statements by Saudi Energy Minister Prince Abdulaziz bin Salman .

Meanwhile, Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz revealed at a press conference on Tuesday evening, the return of oil supplies to pre-targeting levels of Aramco's Khurais and Abqaiq plants .

By 5:30 pm GMT, Brent crude futures rose 1.2 percent to $ 64.31 a barrel, while Nymex crude for October delivery settled flat at $ 58.12 a barrel .

[Pitcher]

Thank you for the oil articles.  You know I trade oil stocks so I appreciate all articles on oil. Today was one sloppy trading day for oil.  We retraced off the lows from yesterday and looked like we would rally, but they sold us off hard. Right back to yesterday’s low.  Rubbish!!!  On a Daily chart it looks like we are still needing at least one more down day to fill the gap up from last weeks news.  It’s a thrill a minute in the oil patch.  

[Pitcher]

https://oilprice.com/Latest-Energy-News/World-News/Its-Time-For-Traders-To-Take-Advantage-Of-High-Oil-Prices.html
 

It's Time For Traders To Take Advantage Of High Oil Prices

By Irina Slav - Sep 20, 2019, 10:30 AM CDT

Citigroup is advising traders to sell their positions on oil and use the proceeds to hedge against a decline in equity markets, Bloomberg reports, citing a note by the bank’s analysts.

“Heightened geopolitics can be simultaneously negative for equity prices through the growth channel and positive for oil prices through supply shocks,” the analysts said in the note. “Buy S&P 500 puts financed by oil puts.”

In addition to the geopolitical factor, other factors that would have an impact on future equity market trends were the U.S.-Chinese trade war, unrealistically high expectations for next earnings season, and the danger of a recession hitting the United States next year, the Citi experts said.

“These developments further validate our view that geopolitical tensions will be protracted. This is a price shock and maybe an inflation shock and a negative-growth shock.”

Brent crude spiked over $70 a barrel following the attack on Saudi oil infrastructure last Saturday and West Texas Intermediate climbed over $60 a barrel. However, the spike was brief and by Friday, Brent had fallen in the low 60s and WTI had dipped below that psychological threshold. At the time of writing, Brent was trading at $63.78 a barrel, with WTI at $58.71 a barrel.

The fast decline that followed the sharp spike in prices came largely on updates from Saudi Arabia that said production will be restored relatively quickly, with half of what was lost already back on stream by the middle of the week.

A report that Saudi Arabia had approached Iraq for additional oil lent prices temporary support but was not enough to send them as high as they had gone immediately after the attacks. For now, geopolitical tensions remain the biggest upside factor for oil prices as President Trump instructed the Treasury to add more sanctions against Iran, blamed by Washington for the attacks.

[Pitcher]

Oil is up .70 today.    WTI. 58.79, Brent 64.99. We have a few things that are contributing to the rise.  

 

Possiblity of SA retaliatory action against Iran. They have said if the evidence is conclusive that Iran is responsible for the attacks then that would be 

“ An Act of War”.  The US has sent troops to SA.  We will support SA, they are our ally 

 

It’s now being reported it will be many months before SA is back to full capacity from the attacks.  

 

Exxon closed its refinery because of the big floods in Houston. Chevron has a huge plant just down the interstate so I’m sure they were closed for a few days as well.

 

A lot of refineries close or scale way back this time of year for maintenance issues and switching over the plants for seasonal gasoline. 

 

Last week before the attack I paid 1.99 a gallon to fill my car. Today it was 2.41 and I saw other stations at 2.61. That’s a big jump in one week.  

 

I’ll be trying to trade it tomorrow.  We’ll see what happens.  

[yota691]

OPEC crude basket price falls to $ 64.51 a barrel

Economie

2019-09-24 | 06:06

 

 

85 views

The Organization of Petroleum Exporting Countries (OPEC) said on Tuesday that the price of its crude basket fell to 64.51 dollars a barrel.

OPEC said in a statement seen by Alsumaria News that "the price of OPEC basket of fourteen barrels of crude recorded today 64.51 dollars per barrel."

"The price has fallen from the previous day of 65.30 dollars, according to the calculations of the OPEC secretariat."

 

The Organization of Petroleum Exporting Countries (OPEC) reference basket consists of the following: Sahara Blend ( Algeria ), Girassol ( Angola ), Orient (Ecuador), Zafiro ( Equatorial Guinea ), Rabi Leit ( Gabon ), Iran Iran ( Basrah Leit) Iraq ), Kuwait Export ( Kuwait ), S Cedar ( Libya ), Bonnie Light ( Nigeria ), Qatar Marine ( Qatar ), Arabian Light ( Saudi Arabia ), Morban ( UAE)And Miri ( Venezuela ).

[yota691]

Oil is falling and Brent crude is at $ 64.37 a barrel

Economie

2019-09-24 | 09:16

 

 

215 Viewed

Oil prices fell on Tuesday, as weak manufacturing data in Europe and Japan focused market attention on a bleak outlook for demand and kept it out of the uncertainty surrounding supply disruptions in Saudi Arabia.

By 06:24 GMT, Brent crude futures were down 40 cents at $ 64.37 a barrel, while US West Texas Intermediate crude futures were at $ 58.31, down 33 cents.

 

"Demand side of the equation is back into focus," said Michael McCarthy , chief market analyst at CMC Markets in Sydney, citing faltering manufacturing figures in major economies in Europe as well as Japan .

“That's why we're seeing a little bit more downward pressure on Brent than West Texas right now.”

However, oil prices remain at relatively high levels since the beginning of the year, following a September 14 attack on Saudi Arabia's largest oil processing plant, which halved production of the world's largest crude exporter.

[yota691]

US emergency crude sold to compensate for supply shortages

Wednesday 25 September 2019 71

 

Washington / Nafi Fartusi

 

 

US President Donald Trump has issued executive orders to allow the sale of US crude oil from the country's strategic stockpile reserves, to compensate for a shortage of global energy supplies that was adversely affected by a series of drone attacks in Saudi Arabia, causing half of the kingdom's crude production to fall, Or about 5 percent of global supplies.

Trump said in tweets on Twitter that the amount of oil that will be released will be "enough to maintain a good supply in the markets." In a tweet later, he announced: "We have a lot of oil!". US Energy Secretary Rick Perry also ordered officials to work with the International Energy Agency on possible options for coordinating action, according to a statement in Washington.

 

Strategic reserve

The use of strategic oil reserves, the world's largest supply of emergency crude, depends on how quickly the Saudis can resume production from the world's largest crude processing facility, analysts said.

The United States worked with the concept of strategic emergency stockpile, after the Arab blockade of oil in 1973 and the use of weapons in the battle against Israel and its allies, which generated a significant rise in prices and long queues in front of US gas stations at the time, and the stock was used previously in response to Operation Desert Storm (war The second Gulf) in 1991, Hurricane Katrina in 2005, and Libyan supplies disrupted in 2011.

 

Great confidence

Bob McNally, a former energy adviser to President George W. Bush and president of consultancy Rapidan Energy Group, said: "But for now, the administration is reassuring the market that the United States and other IEA emergency storage partners are ready to work together and make up for the Saudi supply shortage to the world." “Almost no geopolitical risks are identified in oil markets, which focus only on trade wars and macro-concerns,” said Joe McMonigle, senior energy analyst at Hedge Risk Management. "SPR issuance, especially if coordinated with the IEA action, would alleviate some of the sharp rise in oil prices but also depends on persistent and high geopolitical risks."

 

Future supplies

The emergency stockpile is stored in large underground salt caves along the Texas Gulf Coast and southern Louisiana, although originally created as a backup in case of future supply shocks, the reserve has recently become a bank of Congress, used to fund everything from roads to Medications and even reduced disability. Nearly 10 million barrels were sold in the latest series of sales commissioned by Congress last week.

 

Risk Type

Trump proposed selling half of the emergency stockpile in the 2017 budget request. His administration argued that record domestic oil production made maintaining such a large reserve unnecessary. But McNally said the "potential long-term disruption of critical oil installations" such as the recently targeted 5 million barrels per day Abqaiq facility is "exactly the type of risk the strategic oil reserve has designed to mitigate such dangers."

[yota691]

Oil prices stabilized at 62.74 dollars a barrel

Release date:: 2019/26 23:01 • 116 times read

Oil prices stabilized on Thursday after a statement from the US Department of Defense fueled fears of a conflict in the Middle East, which may disrupt supplies, supporting prices, while weakening new details on the investigation of the accountability of US President Donald Trump Morale on demand.
 

Brent crude futures rose 35 cents, or 0.6 percent, to settle at $ 62.74 a barrel. US West Texas Intermediate (WTI) crude closed at $ 56.41 a barrel, down eight cents after turning briefly higher after a Pentagon statement.
Crude oil contracts trimmed losses late in the session after the ministry said it would deploy radar systems, Patriot missiles and about 200 personnel to bolster Saudi Arabia's defenses after an attack on two oil facilities this month.
Those details illustrate the Pentagon's announcement on Friday of US plans to send more troops to Saudi Arabia after the September 14 attack.
"The market saw a rally late in the session on reports that the United States was sending military equipment to Saudi Arabia to inject news headlines with a new dose of risk premium into the pricing structure," said Jim Ritterbusch of Ritterbusch & Co.
Oil had been hit earlier in the session after the US House Intelligence Committee unveiled a copy of a report alleging that Trump used his position to seek a foreign state's intervention in the 2020 presidential election.
Phil Flynn, analyst at Price Futures Group in Chicago, said Accountability, the market rises, and when the chances of accountability increase, the market declines.

[yota691]

The IEA: We may lower the outlook for global oil demand growth

 27 September 2019 01:25 PM
direct : The International Energy Agency said it may tend to cut their estimates for the growth of global oil demand for this year and 2020, if the global economy slows further.

Fatih Birol, director of the International Energy Agency (IEA), told Reuters on Friday that the cut in the outlook will depend on the global economy, which if weakened "there will be some signals already driving us to reduce expectations of growth in demand for oil."

In August, the IEA lowered its estimate of global oil demand growth for this year and 2020 to 1.1 million and 1.3 million barrels per day, respectively.

Birol pointed to China's slowing economy to its lowest level in three decades, as a justification for the Agency to make some revisions, saying: "Beijing is the engine of global growth."

"But at the same time we should not forget the low oil prices which represent upward pressure on oil demand."

 

[yota691]

A record number of Iraq's oil exports to India, benefiting from OPEC's decision

 

 

 2019/09/27 07:49:19

 

Iraq's oil exports to India rose to a record level last August as refineries replace high-priced African imports with cheaper Basra oil shipments, according to tanker arrival data obtained from industry sources and in shipping. .
The data shows that the world's third-largest crude oil importer brought in about 1.32 million barrels per day of Iraqi crude oil last month, an increase of about one-third compared with last July, an increase of 29% compared with August 2018.
India's imports fell Oil prices rose 18.3 percent to 764,500 bpd as prices of low-sulfur heavy crude from Angola, Cameroon and Chad rose, which are accepted by small and large refineries in China ahead of IMO rules in 2020.

The OPEC plan serves Iraq
and OPEC production cuts and U.S. sanctions on Iran and Venezuela have reduced the supply of high sulfur heavy crude and also allowed Iraq, OPEC's second-largest producer, to gain a market share in India.
"In the spot market, Saudi and Emirati oil are not available while Iraqi oil is readily available at attractive prices, which is why refiners are boosting their purchases of Iraqi oil," said Ihsan al-Haq, an analyst at Refinitiv.
He added that the Iraqi oil marketing company "Somo" sells oil through immediate tenders while boosting production.
SOMO sold Basra heavy crude for loading, in July, at a premium below the official selling price of crude through tenders. The data show that Iraq has retained its position as the largest oil supplier to India after Saudi Arabia.

Increased production
and Iraq pumped 4.8 million barrels per day, in the past few months, rather than a target level of 4.5 million barrels per day, while Saudi Arabia produces oil below its target under OPEC 's agreement.
The data show that India's total imports during August were 4.7 million barrels per day, unchanged from the same month a year earlier.
Indian refineries, like other global refineries, are preparing to increase the production of fuel oil, which has a very low sulfur content to supply ships from 2020.
As of early January, IMO will ban ships from using fuels containing more 0.5% of sulfur, compared to 3.5% currently, to reduce air pollution.
"Some advanced Indian refineries, such as Reliance, can produce fuel oil that has a very low sulfur content from high sulfur oil, such as heavy Basra," said Ihsan Ul Haq.
In August, Reliance Industries doubled its imports of Iraqi oil to about 1.8 million tonnes, data showed.
Data show that due to higher imports from Iraq and Saudi Arabia, India's total imports from the Middle East increased to 16% in August compared to July.
According to the data, India's imports from Venezuela averaged 412,000 barrels per day (bpd) in August, up 48 percent from July.

[yota691]

Oil coming down on data

 

 

 2019/09/27 08:15:40

 

Oil prices fell on Friday after fresh economic data from China raised concerns about slowing economic growth, while concerns about major supply disruptions eased after a faster-than-expected recovery in Saudi crude oil production.

"Oil prices continue to decline after the decline in profits of industrial companies in China in August, reinforcing fears that the world's second largest economy continues to slow," said Edward Moya, chief market analyst at Oanda.

Chinese manufacturers reported a contraction in profits in August, breaking a brief rise the previous month, as weak domestic demand and a trade war with the United States weighed on corporate budgets.

Brent crude futures were down 49 cents, or 0.8 percent, at $ 62.25 a barrel by 0603 GMT.

U.S. West Texas Intermediate (WTI) crude futures were down 23 cents, or 0.4 percent, at $ 56.18 a barrel.

Analysts say the rapid return of oil production in Saudi Arabia, the world's top crude exporter less than two weeks after the September 14 attacks, has also erased risk premiums and pushed crude prices lower.

WTI futures are down 3.3 percent since the start of the week, posting weekly losses for the tenth week in a row, while Brent is down 3.2 percent a week, its biggest weekly loss in seven weeks.

Prices are also under pressure from a sudden increase of 2.4 million barrels in US crude oil inventories last week.

Analysts say US inventories may rise further in the near term, adding to pressure on prices as US refiners cut operating rates due to maintenance.

[yota691]

Oil falls 3% to record strong monthly and quarterly losses

 30 September 2019 10:02 PM
Mubasher : Oil prices fell more than 3 percent on Monday, with Nymex posting strong monthly and quarterly losses.

The loss of US crude comes with uncertainty about trade conditions between China and the United States as well as signs of recovery of Saudi supplies after the "Aramco" incident.

Oil prices posted gains earlier in the day after China reported positive data.

China's industrial purchasing managers' index showed today that it rose for the second consecutive month in September.

Separately, Baker Hughes data revealed last week that the number of oil exploration platforms in the United States fell for the sixth consecutive week, by 6 at 713.

At the settlement, Nymex November crude futures were down 3.3 percent at $ 54.07 a barrel, the lowest level for the most active contract since September 3.

US crude recorded a monthly loss of about 1.9 percent, and fell by about 7.5 percent during the quarter ended today.

Brent crude futures for November delivery were down 1.9 percent at $ 60.75 a barrel by 6:50 pm GMT.

[yota691]

Survey: OPEC oil production falls to the lowest level in 8 years

30 September 2019 10:31 PM
Direct : A recent survey revealed that the production of the Organization of Petroleum Exporting Countries "OPEC" fell to the lowest level in eight years this month on the back of the attack on "Saudi Aramco" Saudi Arabia.

In mid-December, two facilities of Saudi Aramco were hit by drone aircraft, causing a temporary loss of 5.7 million barrels per day of production.

The average production of OPEC's 14 members reached 28.9 million bpd in September, down 750,000 bpd from the previous month, a Reuters survey showed on Monday.

OPEC oil production this month is the lowest since 2011.

According to the survey, the 11 OPEC members committed to the production cut pact, which runs until March 2020, exceeded the easily-promised cuts, with compliance at 218 percent this month, up from 131 percent last month.

Saudi Arabia led the decline in OPEC oil production, where production fell to 9.05 million barrels per day this month.

The survey also showed that US sanctions continued to put pressure on oil production in Iran and Venezuela.

Meanwhile, Beba raised its oil production due to a significant contribution from the country's largest oil field, Al-Sharara, after production stopped in August.

 

[yota691]

Reuters: OPEC production lowest since 2011 after the Aramco attacks

Economy | 10:32 - 30/09/2019

 

 

 

 

 

Follow-up Mawazine News

A Reuters survey found that OPEC oil production fell to an eight-year low in September after attacks on two Saudi oil facilities, deepening the impact of the supply reduction deal and US sanctions on Iran and Venezuela.
The injected fourteen Member States of the Organization of Petroleum Exporting Countries (OPEC) 28.9 million barrels per day this month, as shown by the survey, down 750 thousand barrels per day from August / August average number and the lowest monthly total since 2011.
arrested September 14 / September attacks on Mncota Saudi oil produced 5.7 million barrels per day of production and crude prices rose 20% to $ 72 a barrel on September 16. But then the price fell to $ 61, approaching pre-attack levels, under the weight of the rapid resumption of production and concern about slowing demand.
Craig said Arlam, an analyst at Luanda Financial Brokerage E: "It is clear that traders are not worried particularly the risk premiums prices in oil, it seems that the focus shifted again towards the dynamics of demand and the risk of further reductions."
The "OPEC", Russia, oil producers and other As part of the OPEC + alliance, they agreed in December to cut supply by 1.2 million barrels per day from the beginning of this year. OPEC's quota of the cut is 800 thousand barrels per day, applied by 11 members with the exception of Iran, Libya and Venezuela.
The eleven members who are bound by the agreement, which is due to be extended until March 2020, go well beyond the promised cuts by a large margin. According to the survey, the compliance rate stood at 218% in September, up from 131% in August.
Two of the three exempted members pumped less oil than the previous month, with the biggest drop in Saudi Arabia, which received 9.05 million bpd, down 700,000 bpd from August.
Withdrawal from inventories
The decline would have been greater had Saudi National Aramco not pulled from its crude stock to contain the decline.
Sources in the survey estimated Saudi production between 8.5 and 8.6 million barrels per day, and before the attack this month, Saudi Arabia was already cutting production more than required by the agreement to curb supplies led by OPEC to support the market.
Production has fallen further in Venezuela, which is under US sanctions on state oil company PDVSA, to oust Socialist President Nicolas Maduro, as well as a prolonged decline in production due to lack of investment and maintenance.
This month, PDVSA suspended some crude blending activities and cut production due to an increase in domestic inventories, while sanctions are crippling customers and shipping companies.
The survey showed a mixed trend between Iraq and Nigeria, which pledged to increase commitment, Iraq has reduced its exports from the southern and northern outlets, but Nigeria increased supplies slightly and continued production above the level "OPEC" target.
Other countries that have increased production include Libya, which has pumped more thanks to the rise of Sharara, the country's largest oil field, after disruptions to production in August. Kuwait, according to the survey.
OPEC's production in September is the lowest since 2011, when Libya's civil war collapsed, and excluding changes in membership since then, according to Reuters surveys.
The survey aims to monitor the market's supply, and is based on outsourced shipping data, Refinitiv Icon flows and information from sources in oil companies, OPEC and consulting firms.

is over

[yota691]

Ecuador announces its withdrawal from OPEC early next year

01 Oct 2019 10:47 PM
Direct: Ecuador announced its intention to withdraw from the Organization of Petroleum Exporting Countries "OPEC" on January 1 next due to financial problems.

"The decision is based on internal issues and challenges that the state must take with respect to financial sustainability," the Energy Ministry said in a statement on Tuesday.

The statement added: "This action is in line with the national government's plan to reduce public spending and create new income."

Ecuador wants to increase revenues by selling oil as it tries to increase its crude production amid non-compliance on a number of occasions with OPEC production levels.

Ecuador, which produces about 545,000 barrels per day of oil, faces a large fiscal deficit and a large external debt burden.

The Energy Ministry said the country would continue to support efforts to stabilize the global oil market.

In February, Ecuador asked OPEC for permission to increase oil production above its quota, but the government has yet to confirm whether the group has responded.

Ecuador joined OPEC in 1973 and withdrew for the first time in 1992, but again in 2007.

 

[yota691]

Saudi energy minister: OPEC + alliance supports stability of the global economy

Saudi Energy Minister during his participation in the Russian Energy Week

 02 Oct 2019 12:56 PM

RIYADH - Saudi Arabia's energy minister said on Wednesday mutual interests made it imperative to seek ways and means of cooperation between producers and consumers to stabilize the kingdom, suggesting the kingdom proposed the creation of an international energy forum, of which Russia is a leading member.

Prince Abdulaziz bin Salman bin Abdulaziz, in his speech during the participation of the Russian Energy Week: "We seek to establish relations within OPEC, and with countries wishing to partner outside the OPEC, we have now passed the stage of the preparation of this agreement to a longer-term arrangement of cooperation between OPEC countries and outside ".

The minister pointed out that it is important to realize that the basis of the coalition is not only to benefit producers, but to achieve the interests and stability of markets and the stability of the global economy, taking into account their responsibilities towards consumers.

Prince Abdulaziz bin Salman said that this alliance can achieve the permanent stability of the oil markets, benefit both producers, consumers and the oil industry, and will attract investments and stabilize the financial system, to enable the global economy to prosper and grow.

[yota691]

A sudden drop in US crude inventories is pushing oil up

 

Arabic and International Economy _ News Baghdad Oil rebounded after falling for several days after sector data showed a sudden drop in US crude inventories and overshadowed the impact of weak economic data in the United States, which led to global stock markets. Brent crude <LCOc1> was up 47 cents, or 0.8 percent, at $ 59.36 a barrel by 0657 GMT, offsetting some of the losses it had suffered in the past three sessions. US West Texas Intermediate (WTI) crude was at $ 54.29 a barrel, up 67 cents, or 1.3 percent. The West Texas Intermediate (WTI) contract closed for the closest month of settlement on Tuesday for the sixth consecutive session, the longest decline since the beginning of this year, after manufacturing activity in the United States fell to its lowest level in 10 years due to the tension of US-Chinese trade, which pressures on exports . Oil trimmed part of the losses after data from the American Petroleum Institute showed on Tuesday that US crude inventories fell by 5.92 million barrels last week, while analysts expected a rise of 1.6 million barrels. Oil prices are now below pre-9/11 levels on two Saudi oil facilities as the world's top crude exporter resumed full production. Iran's Oil Minister Begin Zanganeh said on Wednesday he would be willing to meet the Saudi energy minister in Moscow, but the Saudis had a problem with the meeting, the official IRNA news agency reported. "The energy market must be non-politicized to prevent illegal unilateral intervention," the minister said after arriving in Moscow for a meeting of a gas exporting forum. Views: 15   Date Added: 02/10/2019

[yota691]

The Trump administration is determined to keep oil prices low

Tuesday 01 October 2019 47

 

Dr.. محمد رياض حمزة Free Membership

 

 

Daily media follow-up reports on the developments of global oil markets focus on the variables of market mechanisms that determine the price of a barrel of oil and have long neglected, deliberately to mention the political interventions contrived to influence prices. If attacks on Saudi Aramco's oil facilities in Saudi Arabia on September 14, 2019, and on oil tankers in the Persian Gulf occurred a decade or two ago, the price of a barrel would have exceeded $ 100 within a week of such events.

As now and for decades, contrived political interventions in oil markets have been a powerful force for crude oil importers, primarily the United States, to lower prices.

US President Donald Trump wants to keep the economy's strong card to influence the US electorate in his favor in the 2020 presidential election by keeping the price of a gallon of gasoline consumed within the United States as low as possible (the current US gallon price is $ 2.7).

"We are now the world's number one energy producer, we don't need Middle East oil and gas," he said. "When you have the best employment figures in history, when you have The lowest numbers of unemployment in history, and when you have the best economy ever, I didn't know - how the hell would I lose this election: ”, (Free Space September 16, 2019).

In the wake of the attacks on Saudi Aramco facilities, Trump announced a mandate to release oil from the US Strategic Petroleum Reserve. Government stocks are not strategically sufficient. Currently, there are 645 million barrels of crude oil, more than 1.5 times the amount in US private stocks. 

Massive stockpiles would provide full US crude consumption for almost a month. With an average price paid of $ 29.70 per barrel of 

Oil. 

The current US strategic stockpile would cost $ 19.2 billion to fill. Even in today's market prices, the increasing value of this crude stock does not offset the costs of alternatives available for a long time. All this is simply a reduction in supply compared to the capital costs of building and maintaining what may be the greatest strategic stockpile in US history. To better serve the US economy, political interventions must be removed and replaced by a market-based approach. (Steve Hankey, September 27, 2019).

To demonstrate the increasing need for crude oil imported by most importers of crude oil (consumers), especially the United States of America, we recall the comparison between the maximum daily US crude oil production and what it consumes daily. The US Energy Information Administration (EIA) says that the current level of production of US crude oil as of September 2019 is (12 million and 500 thousand) barrels per day. 

This achievement comes less than a year after the production of US crude oil, which exceeded 11 million barrels per day in August 2018. For daily production of crude oil, the United States consumes a total of 7.28 million barrels of petroleum products, an average of about 19.96 million barrels per day, according to the Department of Information US Energy for the Year

 2017. 

Given that only a small amount of crude oil is consumed directly in the United States, almost all crude oil produced and imported into the United States is refined and converted into strategic storage from petroleum products such as gasoline, diesel fuel, heating oil and jet fuel. Liquids from processing natural gas as petroleum products, as well as renewable biofuels, such as ethanol and biodiesel, as an alternative or as additives to refined petroleum products. As of the end of 2018, the United States consumed about 20.5 million barrels of oil per day, or a total of about 7.5 million barrels of products

 Petroleum.

In the sense that there is a gap between what the United States produces and what it consumes crude oil exceeds 8 million barrels per day in 2019, considering that the growth of the US economy is on the rise and may exceed 3% in

 2020.

Therefore, the logic of market mechanisms, apart from political interventions, is likely to increase oil prices during the remainder of 2019 and the coming years supported by tensions in the Middle East. The Organization of the Petroleum Exporting Countries (OPEC) should recognize this and shape its policy in favor of its members by maintaining balanced markets, not a glut of supply, which has long been a cause of low oil prices and damaging the finances of countries. 

Exporting.

[yota691]

The price of OPEC crude basket falls to $ 58.72 a barrel

2019/10/03 01:58 PM

KUNA - The Organization of Petroleum Exporting Countries (OPEC) announced on Thursday that the price of its 14 crude basket fell on Wednesday by 93 cents to settle at 58.72 dollars per barrel compared to 59.65 dollars per barrel last Tuesday. According to the bulletin of the OPEC news agency, the annual average price of the basket last year was 52.43 dollars per barrel. The OPEC basket, which is a reference in the level of production policy, includes 14 kinds: Algerian (Iranian) Sahara, Iranian heavy, (Al-Basara), Kuwaiti export crude, Libyan (Sidr), Nigerian (Boni), Saudi Arabian light crude, Venezuelan crude and (Girasol). Angolan, Orient, Ecuadorian, Zafiro Equatorial Guinea, Rabi Light (Gabon), Gino ore (Congo) and UAE Marban ore. Oil ministers from inside and outside the OPEC agreed on July 2 to extend the decision to reduce production for an additional period of nine months, which expires by March 31, 2020. Through this decision, OPEC members aim to confirm their continued focus on the fundamental factors Its commitment to a stable and balanced oil market is in favor of producers, consumers and the global economy. The agreement between OPEC oil ministers and independent producers requires OPEC to cut production by 800,000 barrels per day, or 2.5 percent of the output of each member state. The 11 non-OPEC countries will also reduce their production levels by 400,000 barrels per day, or 2 percent of each country's output. It is noteworthy that oil prices have been known during the recent period fluctuation between the rise and fall affected by geopolitical and psychological factors in addition to being affected by the increase in the stock of crude.

[yota691]

Kuwait Oil: We do not aspire to a certain price of a barrel of crude

Archive image

 02 Oct 2019 11:14 PM

Kuwait - Mubasher: The Minister of Oil and the Kuwaiti Minister of Electricity and Water confirmed that his country does not aspire to a certain price of a barrel of crude .

Khalid al-Fadhil, on Wednesday, responded to a question about oil prices and their derivatives, saying that prices are determined by supply and demand, indicating that they are still stable and that any rise can come in accordance with the geopolitical events that are going through the region, according to KUNA. ".

He added that Kuwait does not aspire to a certain price per barrel of oil, but to a price that is acceptable for the consumer and oil-exporting countries .

As to whether Kuwait is ready to compensate for any shortage in the world oil market, he explained that Kuwait is within the OPEC system and is committed to the decisions agreed upon through unanimous ministerial meetings .

[yota691]

The price of OPEC crude basket settles at $ 57.96 a barrel 2019/10/04 01:48 PM

KUNA - The Organization of Petroleum Exporting Countries (OPEC) announced Friday that the price of its 14 crude basket fell Thursday by 76 cents to settle at 57.96 dollars a barrel compared to 58.72 dollars a barrel last Wednesday. According to the bulletin of the OPEC news agency, the annual average price of the basket last year was 52.43 dollars per barrel. The OPEC basket, which is a reference in the level of production policy, includes 14 kinds: Algerian (Iranian) Sahara, Iranian heavy, (Al-Basara), Kuwaiti export crude, Libyan (Sidr), Nigerian (Boni), Saudi Arabian light crude, Venezuelan crude and (Girasol). Angolan, Orient, Ecuadorian, Zafiro Equatorial Guinea, Rabi Light (Gabon), Gino ore (Congo) and UAE Marban ore. Oil ministers from inside and outside the OPEC agreed on July 2 to extend the decision to reduce production for an additional period of nine months, which expires by March 31, 2020. Through this decision, OPEC members aim to confirm their continued focus on the fundamental factors Its commitment to a stable and balanced oil market is in favor of producers, consumers and the global economy. The agreement between OPEC oil ministers and independent producers requires OPEC to cut production by 800,000 barrels per day, or 2.5 percent of the output of each member state. The 11 non-OPEC countries will also reduce their production levels by 400,000 barrels per day, or 2 percent of each country's output. It is noteworthy that oil prices have been known during the recent period fluctuation between the rise and fall affected by geopolitical and psychological factors in addition to being affected by the increase in the stock of crude.

[yota691]

Oil records biggest weekly drop since July with losses of 5.5%

 04 Oct 2019 10:12 PM
Mubasher : Oil prices rose for the first time in nine consecutive sessions on Friday, after data from exploration platforms but recorded the biggest weekly loss since July.

Baker Hughes data showed that the number of oil exploration platforms in the United States for the seventh week in a row fell by 3 to 710 points.

Official data today showed the US economy added 136,000 jobs below expectations last month, while the unemployment rate fell to a 50-year low of 3.5 percent.

This week, economic data showed that industrial activity contracted in a number of countries, most notably the United States, the euro zone and Germany, raising concerns about a slowdown in global economic growth and consequently lower demand for oil.

Concerns about the lack of demand for crude caused weekly losses of about 5.5 percent.

At the settlement, US crude for November delivery was up 0.7 percent at $ 52.81 a barrel.

By 7:01 pm GMT, Brent crude futures for December delivery rose 0.9 percent to $ 58.25 a barrel.