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

[yota691]

OPEC is working with the Gas Exporting Countries Forum to monitor energy markets

Secretary General of the Organization of Petroleum Exporting Countries Mohammed Parkindo

 05 Oct 2019 07:26 PM

The Organization of Petroleum Exporting Countries (OPEC) signed an agreement with the Gas Exporting Countries Forum on Saturday to monitor energy markets .

The Secretary General of the Organization of Petroleum Exporting Countries (OPEC), today, said that the Secretary General of the Organization, Mohammed Parkindo, and Secretary General of the Gas Forum, Yuri Siturin, signed the memorandum on the sidelines of the Russian Energy Week Forum in Moscow, according to KUNA .

Barkindo said OPEC looks forward to taking advantage of the framework signed in the Memorandum of Understanding to promote discussions as well as joint actions and actions "for the benefit of the member states of the two organizations and the entire industry and the global economy ."

The consensus is that both oil and gas will remain the preferred fuel for the foreseeable future and will continue to dominate the energy basket .

He pointed out that the Memorandum of Understanding aims to enhance cooperation in carrying out activities and to exchange experiences, views, information and best practices in areas of common interest .

The memorandum of understanding includes strengthening cooperation in various areas, including energy market monitoring, analysis, modeling and forecasting, as well as the preparation of energy market research studies covering the short and long-term and methodologies, energy market data and statistics, statistical data and operational topics such as methodologies and methodologies and methodologies .

It also includes energy initiatives and developments aimed at achieving sustainability along with environmental and social responsibility and other areas and issues involving common interests and concerns .

The Memorandum of Understanding also includes cooperation in the exchange of information and data, holding expert meetings and bilateral in-house workshops to promote the exchange of knowledge and expertise and cooperation in seminars, workshops, conferences and publications .

[Butifldrm]

High oil prices due to the turmoil in Iraq

 

Economy ,oil prices ,rising oil prices

 2019/10/08 05:19:29

 

Oil prices rose on Tuesday as supply concerns were fueled by unrest in crude producers Iraq and Ecuador as demand concerns were set aside as investors awaited the outcome of US-China trade talks this week.
By 06:52 GMT, Brent crude rose 44 cents, or 0.8%, to $ 58.79 a barrel, while US West Texas Intermediate crude rose 42 cents, or 0.8%, to $ 53.17 a barrel. According to Reuters.
Investors are cautious ahead of US-China talks due to be held in Washington on Thursday, although they are not expected to produce a comprehensive deal to end a trade war between the world's two largest economies.
Protests in Iraq and Ecuador have threatened to disrupt production from both OPEC members, and the death toll in Iraq, OPEC's second-largest producer, rose after a week of unrest.
The Ministry of Energy in Ecuador, one of the smallest producers in the "OPEC", which is scheduled to come out of the organization next year, said protests against austerity measures could reduce oil production by 59 thousand and 450 barrels per day.

https://www.shafaaq.com/ar/اقتصـاد/ارتفاع-أسعار-النفط-بفعل-اضطرابات-العراق/

[yota691]

Oil falls for a third day amid trade tensions that may limit demand

 

Arabic and International Economy News _ Baghdad Oil prices fell for a third straight session on Wednesday as tensions between the United States and China mounted ahead of trade talks this week, adding to uncertainty about global economic growth and oil demand. Also curbing prices, US oil sector data show a larger-than-expected rise in inventories from the world's largest oil producer and consumer. By 0656 GMT, Brent crude futures fell 12 cents, or 0.2 percent, to $ 58.12 a barrel, while US West Texas Intermediate crude fell 12 cents, or 0.2 percent, to 52.51 dollars a barrel. Negotiators from the world's two largest economies are due to meet in Washington on Thursday and Friday in the latest push for a deal to end a protracted trade dispute that has slowed global economic growth. But tensions between the two countries increased this week after the United States imposed visa restrictions on Chinese officials over the arrest or violation of the rights of Muslim minorities. Meanwhile, data from the American Petroleum Institute showed on Tuesday that crude inventories in the United States rose by 4.1 million barrels in the week ending October 4 to 422 million. Analysts had expected an increase of 1.4 million barrels, according to a Reuters poll. The US Energy Information Administration's weekly report is due at 1430 GMT on Wednesday. U.S. crude production is expected to rise by 1.27 million bpd in 2019 to a record 12.26 million bpd, slightly above the previous administration's forecast of 1.25 million bpd, the administration said on Tuesday. Views: 20   Date Added: 09/10/2019

[yota691]

Oil prices are falling amid hopes of an end to the US-China trade war

 

Arabic and International Economy News _ Baghdad NEW YORK (Reuters) - Oil prices fell on Thursday amid fears of falling fuel demand, as talks between the United States and China, the world's biggest oil consumer, are not expected to help end their trade war, raising fears about the global economy. BEIJING (Reuters) - China, the world's biggest oil importer, lowered expectations for talks on Thursday and Friday to end a 15-month-old trade dispute with the United States. US President Donald Trump is set to raise the tariff rate on some $ 250 billion of Chinese goods to 30% from 25% on October 15 if some signs of progress are not seen. The trade dispute between the world's two largest economies disrupted global supply chains and slowed growth in both countries, limiting fuel consumption growth. World Brent crude futures were down 11 cents, or 0.2%, at $ 58.21 a barrel by 0354 GMT, while U.S. West Texas Intermediate (CLT1) futures were down 11 cents, or 0.2%, at $ 52.48 a barrel. "If the US-China trade negotiations take the worst, market pessimism will put severe negative pressure on oil prices," said Benjamin Lu, a commodity analyst at Phillip Futures in Singapore. Prices were also affected by a report on rising inventories in the United States, currently the world's largest oil producer. The US Energy Information Administration (EIA) said on Wednesday that crude oil inventories in the United States rose 2.9 million barrels per week, more than double the analysts' expectations of an increase of 1.4 million barrels. In addition, the Organization of the Petroleum Exporting Countries (OPEC) has quietly amended its production agreement to allow Nigeria to increase production, adding more supplies. Three OPEC members familiar with the matter said OPEC had granted Nigeria a lift to 1.774 million bpd from 1.685 million bpd. OPEC member Venezuela will also increase exports despite US economic sanctions that have cut shipments from the country. Indian refiner Reliance Industries Ltd is planning to start loading Venezuelan crude after a four-month hiatus, another sign of an oversupply of crude in the market. Views: 17   Date Added: 10/10/2019

[yota691]

Oil prices retreat on negative US data

Date: 2019/10/10 10:29 • 111 times read

Oil futures fell in early trading on Thursday, weighed down by negative data on US crude inventories.

The US Energy Information Administration said on Wednesday that crude inventories in the United States rose last week ending October 4, by 2.9 million barrels.
By 0625 GMT, Brent crude for December delivery was down 0.24%, or 14 cents, at $ 58.20 a barrel.
US West Texas Intermediate (WTI) crude for November delivery fell 0.23% or 12 cents to $ 52.47 a barrel.
Positive comments by US President Donald Trump on the possibility of a trade deal between his country and China pushed global oil prices down.
Later in the day, a new round of trade talks between the two countries in Washington, will continue until Friday, in an attempt to put an end to more than 16 months of trade tensions.
The United States is the world's largest producer and consumer of crude oil, while China is the world's largest importer of crude oil, with an average of 9.5 million barrels per day. is over

[yota691]

OPEC oil production fell 1.3 million barrels in September

10 October 2019 03:26 PM
From: Sally Ismail

Mubasher: OPEC output fell by more than 1.3 million barrels per day last month, led by a sharp drop in Saudi supplies.

The OPEC monthly report released on Thursday revealed that the production of the 15 member countries reached 28.491 million barrels per day in September, compared with 29.809 million barrels per day in the previous month.

The sharp drop in OPEC oil production last month was led by a decline in Saudi crude supplies by about 1.28 million barrels per day to 8.564 million barrels per day.

Saudi Arabia was attacked by drones on oil facilities, cutting the kingdom's production capacity sharply, before announcing a major part of the supply.

Production in Venezuela, Iraq, Iran, Nigeria and Gabon also declined in September, albeit at a limited pace.

Meanwhile, Libya recorded the largest increase in oil production by increasing its supplies by 104 thousand barrels per day to reach 1.164 million barrels per day in the comparative month.

By 12:03 pm GMT, Brent crude futures for December delivery rose 0.6 percent to $ 58.69 a barrel.

Nymex crude for November delivery rose 0.7 percent to $ 52.94 a barrel.

 

[yota691]

OPEC Secretary General: Strong decisions before 2020

Date: 2019/10/10 15:59 • 83 times read

OPEC Secretary General Mohammed Barkindo said today that the Organization and its allies involved in the agreement to reduce oil supplies will make "strong" decisions during a meeting in December to ensure the stability of the market in 2020.

"The conference will take appropriate, strong and positive decisions that will put us on the path to great and sustainable stability for 2020," Barkindo told reporters.
Asked about a possible deeper cut in oil supplies, the secretary-general told OPEC that "all options are open."
Saudi Arabia, OPEC's biggest oil producer, said its oil production in September fell 660,000 barrels per day from August to 9.13 million bpd, following an attack on two oil facilities in the kingdom.

[yota691]

OPEC: The world needs to continue oil and gas supplies

 

Arabic and International Economy News _ Baghdad The Organization of Petroleum Exporting Countries (OPEC) has stressed that the world is increasingly in need of stable and safe energy supplies as population continues to grow and economies grow for decades to come. `` The world economy is expected to be 2040 times its size in 2018 and the world population is expected to reach 9.2 billion, '' according to an OECD report on the participation of Secretary-General Mohamed Barkindo at the London Oil and Finance Conference held on Monday. about 1.5 billion people from today. the report drew attention to the need to recognize that "energy poverty is still a scourge of our time, although the United Nations report on the objectives of sustainable development indicates that the total number of people who do not have access to electricity services dropped to less However, there is still a lot of work to be done in 2017 William in this area , "pointing to" the existence of 3 billion people lack access to a low - emission fuel for cooking. " The   report stated that"   According to the report, "there are those who believe that the oil and gas industries should not be part of the future of energy and that the future can be dominated by renewable energy and electric vehicles," pointing out that "it is important to state clearly that science does not tell us this and tell us that we need to reduce Emissions and use energy more efficiently. "   "Renewable energy sources are growing strongly as wind and solar power expand rapidly, but until 2040, according to OPEC studies, it is estimated that they will account for only about 19 percent of the global energy mix," he said.   The report noted that "   Many OPEC members have significant sources of solar and wind power, and there are huge investments on the way, while there are no expectations that renewable energy sources will approach oil and gas in the coming decades, the report said.   He stressed that OPEC welcomed the development of renewable energy sources, adding that there is no doubt that electric vehicles will continue to expand in the transport sector, and studies "OPEC" confirm the increase in the share of electric vehicles in the total fleet of land transport, where it is expected to expand to about 13 Cent during 2040. Views: 19   Date Added: 13/10/2019

[yota691]

Kuwaiti oil minister: Oil price between 50 and 70 dollars a barrel acceptable

 

Arabic and International Economy News _ Baghdad Kuwaiti Oil Minister Khalid Al-Fadhil said that the current oil price level between $ 50 and $ 70 a barrel is acceptable, adding to reporters that the level of oil prices range between 55 and 65 and $ 70 a barrel and that this level is considered acceptable, although we aspire to be more stable in the prices". Fadil said that falling oil prices too low will harm the consuming countries, adding, "If prices fall below the necessary level, there will be no investments in the oil field." "We are in the process of reconsidering some of the issues related to the strategy of oil and gas production," he added. Views 14   Date Added 10/14/2019

[yota691]

OPEC + oil cuts expected to be more than 200%

Economy | 10:41 - 14/10/2019

 

 

 

 

 

Follow - Mawazine News

OPEC oil producers and non-OPEC producers are expected to comply with a supply cut of more than 200 percent in September, sources familiar with the matter said on Monday.
The high level of commitment was mainly due to attacks on two oil facilities in Saudi Arabia, which reduced the kingdom's production, the sources added.

[yota691]

Oil prices rise as OPEC hints for deeper production cuts

 

Arabic and International Economy News _ Baghdad Oil prices rose, tracking gains in equities as investors pinned hopes on a possible deal between Britain and the European Union on its exit from the bloc, as well as indications from OPEC and its allies that further production cuts may be possible. But gains were limited by persistent fears of a global economic slowdown. Brent crude futures rose 25 cents to $ 58.99 a barrel, up 0.4 percent from the previous day's close. US West Texas Intermediate (WTI) crude was up 23 cents, or 0.4 percent, at $ 53.04 a barrel. Further support, OPEC Secretary-General Mohammed Barkindo said the Organization of the Petroleum Exporting Countries would "do what it can" with allied producers to stabilize the oil market beyond 2020. Prices have been under pressure from fears of a global economic slowdown due to the prolonged trade war between the United States and China, as well as a large increase in US inventories. The International Monetary Fund warned on Tuesday that the US-China trade war would cut global growth in 2019 to the lowest pace since the 2008 and 2009 financial crisis. Views 45   Date Added 10/16/2019

[6ly410]

OPEC asks Iraq why Kurdistan is not committed to its oil exports

17:31 - 16/10/2019

https://www.almaalomah.com/2019/10/16/432911/

Information / special ..

The Committee on Energy in Basra, on Tuesday, Iraq received a question from the Organization of Petroleum Exporting Countries on the reasons for the failure of the Kurdistan region to export oil and export outside Sumo.

The Chairman of the Committee Shaddad Al-Faris / information / that "the export of Kurdistan to oil outside the controls of the federal government will reflect on Iraq's oil policy abroad."

He added that "the Organization of Petroleum Exporting Countries (OPEC) has asked Iraq the reasons for Kurdistan's export of oil outside Iraqi exports, without counters and anonymous imports.

The Energy Committee announced, on Monday, the Federal Court accepted the lawsuit against Kurdistan for non-compliance with the provisions of the 2019 budget. Done 25 and

[yota691]

Oil rises on settlement with OPEC hints to cut production

16 October 2019 09:57 PM
Mubasher : Oil prices rose nearly 1 percent on Wednesday, with OPEC hints of production cuts and preliminary US inventory data.

OPEC Secretary General Mehmet Barkindo said OPEC would do all it could and producer allies to sustain oil market stability after 2020.

OPEC is cutting production in cooperation with Russia at the moment by 1.2 million barrels per day, to support prices.

Oil prices also rose as the USD lost ground on negative economic data.

The American Petroleum Institute is due to announce later in the day US preliminary inventory data for last week and the Energy Information Administration will release official figures tomorrow.

At the time of settlement, Nymex crude futures for November delivery rose 1 percent to $ 52.36 a barrel.

By 6:49 pm GMT, Brent crude futures for December delivery rose 1 percent to $ 59.35 a barrel.

 

[yota691]

$ 10 a barrel .. Is this scenario possible for oil prices?

 19 October 2019 06:06 PM
Edit: Noha copper

Direct: While predictions of oil price volatility are on the rise, one issue is increasing: the potential price premium due to geopolitical risks.

Initially, theories were related to the closure of the Strait of Hormuz, and then turned into fears about an all-out war between Iran and the United States or Iran and Saudi Arabia.

All this is merely a possibility, but the reality suggests that a completely different kind of extremism is more likely: a "sharp drop in oil prices."

Julian Geiger, in an analysis published by Oil Price, says that among the cries of the geopolitical risk premium, there are more frightening whispers than words like demand collapse, trade disputes, and a deteriorating economic climate.

These words describe the current reality in the market, and then point to a similar future fact, in which the collapse of demand drives prices downward.

The question becomes: Is it possible to drop the price of oil to the level of $ 10?

Undermining demand prospects

Throughout 2019, analysts seemed unable to cut their demand forecasts fast enough.

The International Energy Agency continued its downward revision to its estimate of oil demand growth in 2019 and beyond.

The IEA cut its forecast for oil demand growth this year from 1.4 million bpd in January to 1.1 million bpd this month.

The estimates were based on actual global demand, which in May fell 160,000 barrels per day on a yearly basis.

On the IEA's forecast for next year, it also lowered its estimate of oil demand growth from 1.4 million bpd in June and then 1.3 million bpd in August, which was confirmed in a report last month.

The Organization of the Petroleum Exporting Countries has its own demand forecast, which it also revised down almost regularly this year.

Although oil demand growth slightly above the 1 million bpd level is not a bad thing for the market, the downward trend is clear and indicates weakness will continue.

Historically, the oil market has been subjected to this, despite major geopolitical events specifically linked to the oil market.

These geopolitical events made the difference as prices rose on every occasion, but these events are now unable to sustain high prices.

But what we are seeing are only temporary flash points that are quickly disappearing, suggesting that oil prices are tied to the fundamental realities of slowing demand and strong production, and all indications are that this will continue.

History repeats itself

A look at history would be enough to discover the uncertainty of recent forecasts of oil prices at $ 100 should uncertainty persist in the Middle East.

Cycles of recession and prosperity are taken for granted in the oil industry, where Brent crude has suffered major collapses in the past, and there is no reason to expect something different in the future.

Recession and prosperity booms continue their familiar pattern and stem from a variety of stimuli.Currently, the factors that may push the price of oil to collapse are: a strong dollar, high OPEC production, high US oil inventories and production, a weak economy and a collapse in demand for crude, and speculation.

In 2009, oil prices fell from the level of $ 140 a barrel the previous year to the lowest $ 40 a barrel, a decline of more than 50 percent.

The collapse in oil prices in 2009 was not simply the result of a collapse in demand.

The sharp fall in the price of oil also caused the financial crisis, which triggered a global credit crunch.

This strengthened the value of the US dollar, which in turn caused a further negative impact on oil demand.

As prices fall, investors tend to end their buying and selling positions, panic increases further and others go on to sell and exit the market and fear is accelerating further and so on.

In 2014 and 2015, oil prices experienced a similar decline, dropping from a high of $ 100 a barrel to a low of $ 40 again, a drop of more than 50 percent.

That time, the reason was an economic slowdown for major oil importers such as China and India, and the latest blow came from the United States, where shale oil production boomed.

Now there are similarities too. While oil prices are not at record levels, US production is at an all-time high, and the global economic outlook is not so high.

The trade war between the United States and China threatens to ease demand from the world's biggest oil importer, China, and OPEC production quotas are not enough to make the difference in the other direction.

Speculators once again dominate the market, and hedge funds are rushing to exit, with fund managers selling 46 million barrels of Nymex crude and 17 million barrels of Brent as of October 1.

The market can now be described as a "turbulent short-memory market." Hedge funds have already forgotten the attack on Saudi infrastructure, and bets on Brent and Nymex crude have fallen to an eight-month low.

If we exclude the possibility of oil-related disasters, it is difficult to see a significant recovery in prices in the short term.

And predicted, "FX Empire" that oil prices will fall below $ 40 a barrel.

Reuters and IEA polls forecast oil prices to stay around $ 60.

At the same time, Goldman Sachs analyst Geoff Corey believes that the risk of oil prices falling at $ 20 would be driven by a so-called storage breach, which means you have a higher supply of demand. Excess oil.

Of course, these very low prices will ultimately thwart any further investment in the sector, which will inevitably lead to higher prices as a new bullish cycle begins.

But this is a simple consolation for any oil and gas companies that have huge debt and will not be able to repay creditors at a low of $ 40 a barrel.

So the question is not how high prices can actually jump, but how long will the next boom and recession take, and how many oil and gas companies will be exterminated during this process?

 

[yota691]

Oil records gains on settlement for the first time in 3 sessions

 22 October 2019 11:21 PM
Direct : Oil prices climbed at the settlement of trading on Tuesday, US crude to record the first gain in three sessions in the wake of a report on the possibility of implementing a significant reduction in the supply of crude on the back of fears of falling demand.

According to a recent report today that the Organization of Petroleum Exporting Countries ( OPEC ) and its allies are seeking to reduce oil production more frequently during their next meeting in December / December.

Despite US President Donald Trump's remarks yesterday that efforts to end the trade war with China are going well and negotiators are working to finalize the initial agreement, fears that this will not be achieved remain.

US Commerce Secretary Wilbur Roos said yesterday that there is no need to complete the so-called initial trade agreement with China next month.

The American Petroleum Institute is due to release later today preliminary inventory data for last week.

At the time of settlement, Nymex crude futures for November delivery rose 1.6 percent to $ 54.16 a barrel.

By 8 pm GMT, Brent crude futures for December delivery rose 1.2 percent to $ 59.65 a barrel.

 

[yota691]

Oil prices fall for the first time in 5 sessions

28 October 2019 09:58 PM
Mubasher : Oil prices fell more than 1 percent on Monday to settle for the first time in five sessions as concerns over slowing crude demand coincided with negative economic data from China.

Economic data showed that industrial profits in China fell for the second consecutive month in September as producer prices continued to fall.

Crude prices have failed to capitalize on positive comments about the US and China approaching the first phase of the trade deal.

Russia's energy minister said last weekend that they were continuing to work closely with Saudi Arabia, OPEC and outside producers to promote market stability.

OPEC is cutting production in cooperation with Russia by 1.2 million barrels per day, which is in force until March.

Baker Hughes data at the end of last week showed that the number of oil drilling platforms in the US in the week ending October 25 fell by 17 to 696.

At the settlement, the price of futures contracts for "Nymex" US crude for December delivery fell 1.5 percent to $ 55.81 a barrel.

By 6:50 pm GMT, Brent crude futures for December delivery fell 0.7 percent to $ 61.61 a barrel.

 

[yota691]

Despite the transformations, the world cannot be complacent about protecting oil

Saturday, October 26, 2019 53

 

Tim Gould and Tae Yoon Kim

Translation: Shaima Miran

Aramco's targeting in Saudi Arabia served as a stark warning to the world that oil protection cannot be taken for granted, even if markets are well-equipped. However, there were other views that this type of disruption in oil processing may have less impact in the future, either because of changes in oil markets, or that oil itself is being set aside by rapid shifts to other energy sources. The International Energy Outlook (IO) report of the International Energy Agency (IEA), due to be published on November 13, poses a direct question: Does changing energy dynamics until 2040 mean that the world can become more comfortable with oil protection?

The answer is briefly that there is little room for complacency. Although the market and policy environment may change rapidly in some areas, oil protection concerns do not fade in any of the scenarios examined.

Whether we like it or not, what happens in the oil markets will remain important for all of us over the coming decades.

 

Will oil withstand change?

Oil is no longer the only force in the global economy and the energy mix as before. Although it is still the largest fuel in the global energy mix, its shares have now fallen to 31 percent from 45 percent in 1974 when the IEA was established. The amount of oil consumed per economic production unit has also fallen by a third since 2000, which means that economic growth will not drive oil consumption growth as much as in the past.

These trends are set to continue as oil is used more efficiently and consumers and policy makers are looking for cleaner alternatives to transport. The WEO 2019 report included a scenario based on current policy settings and ambitions, which recognizes an indication of a decline in oil demand growth by the late 2000s, mainly due to dramatic changes in the passenger car sector, which accounts for a quarter of global demand. More coordinated efforts to address climate change and air pollution will accelerate these changes further.

Changes on the supply side also alleviate some of these concerns. The remarkable rise in US shale oil production has brought more diversification into global inventories and reduced dependence on some traditional producers and exporters. The short-term production and investment cycle of US shale oil has also made it more responsive to price movements, and has provided some secure network of markets in the event of an imbalance between global demand and supply.

Although the transformation of oil markets is comprehensive, their effects need to remain relevant. The peak of the use of oil as fuel for passenger cars is evident, but it is no longer the case for many other sectors demanding oil, such as shipping, air navigation or freight cars. And the petrochemical sector.

Even in the scenario, the shared determination to achieve the 2015 targets of the Paris Agreement on climate change completely reduces global oil consumption, and the oil market will remain only 67 million barrels per day by 2040. This can be compared to the size of markets in the early 1990s.

On the supply side, traditional oil producers are competing with a boom in US production, but they will not be able to outperform them. The Middle East remains by far the largest network of crude oil suppliers to international markets. As the US position develops in global markets, new potential weaknesses may emerge.

For example, oil analysts monitored the impact of the hurricane season in the Mexican Gulf in general on US domestic supply, as happened in Hurricanes Katrina and Rita in 2005. Extreme weather in this region is now crossing one of the major global routes for exporting oil.

 

Import barriers and dependency

Our expectation is that dependence on oil, especially importation, will not disappear quickly. In a scenario based on current policy ambitions and settings, which include some ambitious goals to make transportation more efficient and electricity-dependent, oil use continues to increase across many developing countries, and demand is shifting significantly towards Asia, where imports of leading economies and high import bills Large.

In this scenario, Asian importers benefit from the wide variety of processing sources. There is a significant increase in flows from North and South America to Asia. Despite significant changes in oil markets over the coming period until 2040 and rising US production, the shipping of crude oil from the Middle East to Asia will remain dangerous.

This means that the Strait of Hormuz, the narrow waterway that connects oil producers across the Gulf with global markets, will remain the vital artery of global oil trade, as the strait currently transports about 16 million barrels per day of crude oil and 4 million barrels per day of oil products That is, about a third of the global oil trade transported by sea to consumers in Asia. In 2018, nearly 80 percent of Japan's crude oil imports, 40 percent of Chinese imports, and a quarter of global LNG trade were passing through the strait, so any barrier to transshipment would strain markets financially.

The Strait of Hormuz is not the only potential waterway. There is the Malacca Strait between Malaysia and Indonesia, which connects exporters in both the Middle East and Africa with Asian importers. Today, nearly 19 million barrels of crude oil and petroleum products pass through the Strait and is an important location for storing and blending fuel and for refueling ships as well. Increased traffic across this narrow strait may increase the risk of congestion, collision and attack, which could have major implications for global oil and liquefied gas markets, as is the case for the Strait of Hormuz, so finding alternative routes is not a simple task.

 

Some barrels are more efficient

The quality of crude oil is another important issue. Crude oil exported from the Middle East mainly comprises light and medium sour crude. 70 percent of the crude oil handled in Japan and Korea refineries is light and medium sour crude, and there is also a widespread desire by the refineries of China and India for these grades, although they deal with a more diverse range of these different grades. Any potential disturbance to the supplier, whether in the Middle East or in one of the major corridors, could have a major impact, particularly in the global supply of oil most demanded by Asian refineries.

In such a situation, these stocks are virtually replaced by increased production from other regions. America may be the main candidate, as its shale oil production is likely to increase relatively quickly in the event of a prolonged upheaval. However, due to differences in the quality of crude oil, the use of US production to offset the sudden drop in average sour crude stocks will be accompanied by additional challenges.

 

Producing economies concern consumers

The changing energy system also poses subtle questions to many of the world's traditional experts and oil producers about the high probability of continued pressure on economies that rely heavily on hydrocarbon revenues. As we highlighted in last year's WEO special report, the fundamental changes of the evolving model prevailing in resource-rich countries seem inevitable.

The volatility of oil prices in recent years has caused the removal of certain structural weaknesses in many producing countries and prompted a number of governments to renew their commitment to reform and diversify their economies. How producers respond to change policy and a market environment is critical not only for their future aspirations but also for the oil markets and their security.

Lax and unsuccessful reform efforts may increase future risks, especially with regard to the need to create jobs for young and developing people. These risks may double in an environment where global demand and prices are low. Indeed, in the absence of reform, the risks of turbulence and volatility may be much greater in scenarios where major producers must face the constant pressure on hydrocarbon revenues.

 

No isolation in energy

There are many reasons why policymakers should pay close attention to the security of the oil market, even as they pursue a range of other important environmental and vital goals. The apparent slowdown in aggregate oil demand growth will be noticeable during the mid-1920s, but demand will continue to accelerate in much of Asia, and these supplies will flow through large corridors. Higher US production will provide Asian importers with opportunities to diversify the material supplied, but it will also increase pressure on productive economies, some of them in areas facing escalating geopolitical tensions.

No country is immune from these developments. These risks associated with natural disruption of processing may change over time, but they are all affected by price movements in interconnected global markets.

Against this background, the role of emergency oil inventories remains vital to help deal with sudden processing disruptions.

It will also be important for refiners to improve the flexibility of their management methods, as well as to eliminate importing countries from subsidizing fossil fuel depletion, enhancing energy efficiency and alternative technologies to reduce their weaknesses, as well as accelerating productive economies in their efforts to reform and diversify their economies.

 

 

About the International Energy Agency

[yota691]

Saudi Arabia, US agree to secure global energy supply

Saudi Energy Minister Prince Abdulaziz bin Salman meets with his US counterpart in Riyadh

 29 October 2019 10:29 AM

Riyadh - Mubasher: Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz met US Energy Secretary Rick Perry in Riyadh on Monday.

During the meeting, they discussed ways to strengthen relations between the two countries and investments in the field of energy, climate and technology, and the situation of the oil market, according to the Saudi Press Agency (SPA).

The two sides affirmed their determination to work together to ensure the security of the global energy supply, considering that any threat to these vital facilities is a threat to the interests of all countries of the world .

Prince Abdulaziz bin Salman stressed the Kingdom's role as the reliable supplier of crude oil in the world in stabilizing the market and its full commitment to provide this strategic commodity .

The meeting dealt with the role of OPEC members and non-OPEC producers in coordinating production, and striving to achieve balance in the oil market, in a way that ensures the interest of both producing and consuming countries, contributes to supporting global economic growth, and encourages more oil investments .

The meeting dealt with the two countries' concern over threats to oil installations in the Persian Gulf and freedom of maritime navigation.

[yota691]

Oil prices are rising but heading for strong weekly losses

 01 Nov 2019 09:31 AM
Mubasher : Oil prices rose on Friday, but are heading for strong weekly losses with concerns and lack of demand.

Brent crude futures for January delivery were up 0.1 percent at $ 59.69 a barrel by 6:15 am GMT.

However, crude is heading for a weekly loss of about 4 percent.

US crude for December delivery rose 0.1 percent to $ 59.69 a barrel.

US Nymex crude fell for the fourth consecutive session by 1.6 percent, while a slight monthly gain in October of 0.1 percent.
    
There are fears that demand for crude will decline as global economic growth slows.

Economic data in China yesterday also showed a contraction in manufacturing activity last month, with the PMI slumping to 49.3 in October from 49.8 in September.

Baker Hughes is due to release data later in the week on oil rigs in the United States.

 

[yota691]

High oil prices .. And "Nymex" exceeds 57 dollars

 05 November 2019 01:54 PM
Direct: Oil prices rose during Tuesday's trading, pushing US crude up $ 57 a barrel amid anticipation of US inventory data.

Investors are awaiting the release of preliminary data on US oil inventories later in the day by the American Petroleum Institute, with official figures to be released tomorrow by the US Energy Information Administration.

According to a Reuters survey, US oil inventories are expected to rise by 2.7 million barrels in the week to November 1.

Oil prices were supported by trade optimism over the signing of a partial US-China trade deal, which is due to take place this month.

On the other hand, the Organization of Petroleum Exporting Countries (OPEC) lowered its estimates of the growth of global oil demand in the medium and long term due to difficult market conditions and signs of global economic pressure.

By 10:25 am GMT, Brent crude futures for January delivery rose 1.1 percent to $ 62.82 a barrel.

US crude futures for December delivery rose 0.9 percent to $ 57.04 a barrel.

 

[yota691]

OPEC expects oil market share to shrink as shale expands

 05 Nov 2019 03:24 PM
direct: Organization of Petroleum Exporting Countries ( OPEC ) cut its estimate of the amount of oil pumped will need in the coming years, amid expectations of a shrinking share of the global market until the middle of the next decade by the American rock crude.

The Organization of the Petroleum Exporting Countries (OPEC) has lowered estimates of global oil demand growth, according to OPEC's annual outlook on global oil released on Tuesday over the medium and long term as the global economy pressures, .

The Organization of the Petroleum Exporting Countries said the past 12 months have been tough for energy markets again, citing a downward revision in the outlook for global economic growth.

The organization has lowered its production forecasts of the Petroleum Countries oil 14 member states over the next five years to 32.8 million bpd in 2024, less than the 35 million bpd projected for 2019.

According to the 13th annual report, global oil demand is expected to grow by 104.8 million bpd by 2024 and by 110.6 million bpd by 2040.

OPEC said the main driver of medium-term non-OPEC oil supply growth remained largely US oil.

The Organization expects that the supply of US oil in the medium term will rise by about 6.7 million barrels per day amid expectations of a record high at 17.4 million barrels per day in 2029 before falling to 14.5 million barrels per day in 2040.

 

[yota691]

OPEC + alliance hits oil prices

Economie

2019-11-07 | 09:32

 

 

Source:

Russia Today

 

657 views

Oil prices fell significantly on Wednesday after a report that OPEC + countries will not insist on deepening production cuts during their meeting in Vienna on December 5-6.

The report, published by " Bloomberg, " citing informed sources, a resounding response as the price of a barrel of "Brent" within minutes from $ 63.3 to $ 61.5 dollars, that is, the "Brent" barrel by 2.84%.

The sources said that OPEC and its allies are committed to the current production targets of reducing production by 1.2 million barrels per day until the end of the first quarter of 2020 in order to absorb the excess glut from the markets.

 

 

In addition, black gold markets were affected by data released by the US Department of Energy, which showed remarkable growth in commercial oil inventories, which rose last week by about 9 million barrels, for the second week in a row.

[yota691]

2019/11/12 03:54:01 PM 197

Oil prices are rising globally

 

Follow / tomorrow

Oil prices rose on Tuesday, amid hopes that the United States and China will make progress in their trade negotiations.

 

 

By 06:44 GMT, Brent crude was up 0.5% at $ 62.49 a barrel, after falling to $ 61.90 a barrel earlier on Tuesday.

WTI crude oil rose 0.4% to $ 57.09 a barrel, after falling earlier to $ 56.55 a barrel.

Prices fell on Monday on concerns about the impact on oil demand from the repercussions of the 16-month US-China trade war, which has cast a shadow on global economic growth.

Trump said on Saturday that talks with China were going "very well," but the United States would only make a deal if it was the best for Washington.

He also said that there were false reports of the US intention to raise tariffs.

Trump is scheduled to speak at the New York Economic Club later on Tuesday, and markets will be hungry for anything new about talks with Beijing.

[yota691]

OPEC: agreement between Beijing and Washington will remove the "bleak cloud" over the oil market

Political | 03:28 - 13/11/2019

 

 

 

 

BAGHDAD balances News
expressed the Secretary General of the Organization of "OPEC" Mohammed Barkindo, Wednesday, expressed the hope that the United States and China reach agreement puts an end to the trade war, noting that it will remove the "dark cloud" hanging over the oil market.
Barkindo told reporters on the sidelines of an energy event in Abu Dhabi, it is premature to discuss the decision, which will be taken by the "OPEC +" in December, and it is too early to say whether there is a need for further cuts.
He stressed that "OPEC" and its partners outside the organization need to continue to work together to overcome the uncertainty, and they are committed to do so.
Earlier, US President Donald Trump said the two countries were close to finalizing the deal, but gave no details on when or where it would be signed. Ended / 29 BC

[yota691]

Oil falls as expectations of a China-US trade deal fade

 

Oil rig in Texas. Reuters

Arabic and International Economy News - Baghdad Oil prices fell on Wednesday as expectations of a China-US trade deal receded, casting a shadow over the outlook for the global economy and energy demand. US President Donald Trump said on Wednesday the two countries were close to finalizing the trade deal, but gave no details on when or where the deal would be signed, disappointing investors. Brent crude futures were down 32 cents, or 0.5 percent, at $ 61.74 a barrel by 0758 GMT. WTI was down 26 cents, or 0.5 percent, at $ 56.54 a barrel. The International Energy Agency expects global oil demand to slow after 2025, also putting pressure on the market. A preliminary Reuters survey revealed on Tuesday that US crude inventories are expected to have increased last week for the third consecutive week, while stocks of refined products are likely to have fallen. The American Petroleum Institute is due to release its latest week data at 2130 GMT on Wednesday, while the US Energy Information Administration is to release its weekly report on Thursday. Views: 12   Date Added: 13/11/2019