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Oil markets are waiting for big cuts in OPEC


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Within a month... Iraq's oil production increased within OPEC

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2023-06-14 04:51

 

Shafaq News/ OPEC announced that the oil production of the 13 member states of the organization decreased in May by 464,000 barrels per day, to reach 28,065 million barrels per day, compared to last April, due to the decrease in the production of Saudi Arabia and the UAE, while Iraq’s production increased, according to the organization’s secondary sources.

 

According to the June report of OPEC, seen by Shafaq News Agency, "The largest declines came first from Saudi Arabia, as its oil production decreased by about 519 thousand barrels per day, to reach 9.977 million barrels per day, followed by the UAE, with a decrease of 140 thousand barrels per day, bringing its oil production to 2,894." One million barrels per day, followed by Kuwait and Algeria, down 95 and 36 thousand barrels, respectively.

 

 

She pointed out that "the countries with the highest increase in their oil production for the month of May were Nigeria, with an increase of 171,000 barrels per day, followed by Iran, with an increase of 61,000 barrels per day, followed by Angola, with an increase of 54,000 barrels per day, and then Iraq, with an increase of 22 barrels per day, bringing its production to 4,137." Millions of barrels a day.

 

In its report for the month of June, the Organization of the Petroleum Exporting Countries (OPEC) expected a decline in oil demand in China by about 60,000 barrels per day in 2022, compared to previous estimates last month, with an increase in demand by about 120,000 barrels per day.

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Basra crude prices rise by more than 2%

 
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2023-06-14 // 03:43
 

Shafaq News / Basra crude prices rose by more than 2% on Wednesday, with the rise in global oil prices.

 

Basra Heavy crude prices rose $2, or the equivalent of 2.90%, to reach $70.75.

 

Basra medium crude prices rose 2 dollars, or the equivalent of 2.78%, to reach 73.90 dollars.

 

Oil prices rose globally with China, the second largest economy in the world, taking a package of stimulus measures and cutting interest rates.

 

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Oil prices... a slight decline and weekly gains

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2023-06-16 01:40
 

Shafaq News / Oil prices fell slightly during trading today, Friday, amid expectations of more monetary easing in China and despite concerns about further monetary tightening in the United States and Europe. 

 

UBS expects, in a note, a supply deficit in the market of about 1.5 million barrels per day in June, and more than two million barrels per day in July, and that as soon as that deficit appears in oil stocks, prices may go up. 

 

Data released yesterday showed that the productivity of oil refineries in China increased by 15.4% in May on an annual basis, recording the second highest total level ever. 

Brent crude futures for August delivery fell 0.25%, or 19 cents, at $75.48 a barrel, at 08:02 am Mecca time.  

 

US crude futures for July delivery also fell 0.2% to $70.48 a barrel, after rising by about 3.4% in the previous session. 

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Basra crude prices closed on a weekly gain

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2023-06-17 01:36

Shafaq News/ Basra crude settled higher and recorded weekly gains, similar to the rest of Brent and American crudes.

 

Basra Heavy crude closed in its last session on Friday, up $2.11, to $71.97, and recorded a weekly gain of $1.27, equivalent to 1.8%.

 

While Basra Intermediate crude closed in its last session higher, also amounting to 2.11 dollars, to reach 75.12 dollars, and also recorded weekly gains of 1.27 dollars, or the equivalent of 1.73%.

 

As for Brent crude, it closed in its last session of Friday, up by 94 cents, to reach $76.61, and recorded a weekly gain of $2, or 2.4%.

 

West Texas Intermediate (WTI) crude closed in its last session of Friday, up by $1.16, to reach $71.78 a barrel, and recorded weekly gains of $1.87, or 2.3%.

 

Oil prices rose after the increase in demand from China and the OPEC + alliance cut production, despite expectations of a weak global economy and the possibility of raising interest rates again.

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The stability of oil after its decline following the interest rate hike in Britain

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2023-06-23 00:48

Shafaq News/ There was no significant change in oil prices in early trading, on Friday, but it is heading towards recording a weekly decline of 3% due to concerns about fuel demand after increasing interest rates more than expected in Britain and warnings of a looming increase in US interest.

 

By 00:26 GMT, Brent crude futures fell seven cents, or 0.1%, to $74.07 a barrel, while US West Texas Intermediate crude futures fell 11 cents, or 0.2%, to $69.40.

 

Both benchmarks fell nearly $3 in the previous session after the British central bank raised interest rates by half a percentage point, raising fears of a slowing economy affecting fuel demand.

 

The impact of the rate hike outweighed the support that oil received from a sudden drop in US crude inventories.

 

The market is now awaiting the release of purchasing managers' indices from around the world today, Friday, to see the manufacturing activity and demand trends.

 

In the United States, US Federal Reserve Chairman Jerome Powell said that the Bank will move interest rates again, albeit at a "cautious pace", while policymakers are heading towards ending a historic cycle of monetary tightening.

 

Higher interest rates increase borrowing costs for businesses and consumers, which can slow economic growth and reduce demand for oil.

 

On the supply side, US crude inventories unexpectedly fell last week, supported by strong demand for exports and lower imports, the Energy Information Administration said Thursday. But gasoline and distillate inventories rose.

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Supply Worries Drive Oil Prices Higher

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 Economy
+A -A

INA-  sources 

Crude oil prices began trade with a gain today as supply worries returned to the table amid the rebellion news from Russia and expectations of demand growth during peak driving season in the United States.
In midday trade in Asia Brent crude was moving toward $75 per barrel with West Texas Intermediateclimbing above $70 per barrel.

News about a rebellion in Russia by private military contractor Wagner added fuel to oil prices at the start of the week. The group was quick to agree to a deal ending the rebellion, basically ending it before it really started, but concern has lingered as the market watches what happens next.
"There's a possibility of supply disruption any time you get a serious geopolitical event in a major oil supplier," Stephen Innes, managing partner at SPI Asset Management, told the Financial Times. "It opens up a can of worms and we're going to have to see how that plays out."

An additional 1 million barrels per day (bpd) unilateral cut by Saudi Arabia, set to take effect in July, coupled with seasonally stronger demand, should help to physically tighten the market in Q3," BIM Research said in a note cited by Reuters.
Meanwhile, demand from the United States for July 4 is expected to jump but it seems the jump will be a temporary price driver. In light of the last signals from the Fed, demand for oil in the world's largest consumer is not likely to expand in any meaningful way this year as the economy stumbles.
"We expect growth to moderate in [the second half of the year] as the recent tailwinds boosting service sector activity fade and the drags from restrictive monetary policy and tightening credit build," JPMorgan's strategists in a note cited by the FT.

Persistent inflation should keep pressure on central banks to maintain restrictive stances - and likely tighten further.
This should keep a lid on oil prices despite the Saudi cuts and the instability alert in Russia.

source: Oil Price 

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Iraq and Saudi Arabia lose their share of oil in the Asian market

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2023-06-27 02:51

Shafaq News / Iraq and Saudi Arabia began to lose their oil share in Asian markets, with the Asian giants India and China choosing cheaper discounted Russian crude, according to S&P Global Commodity Insights.

 

According to S&P Global, preliminary data indicates that Indian refiners' imports of Russian crude in May reached an all-time high of nearly 2 million bpd, surpassing combined purchases by Iraq and Saudi Arabia and displacing supplies from the Middle East, Africa and some US supplies.

 

 

These imports are expected to account for 40%-45%, or 2 million-2.5 million barrels per day, of India's basket of crude oil imports, S&P Global said, assuming prices remain competitive compared to alternative sources.

 

Meanwhile, China's imports of crude oil from Russia hit a new record of 2.30 million barrels per day (9.71 million metric tons) in May, more than Saudi imports of 1.73 million barrels per day.

 

China's crude oil imports from Russia are also likely to grow for the foreseeable future as Russia increased supplies of the Espoo blend medium sweet crude to 39 Aframex-sized cargoes in May, with China accounting for 29 cargoes and India 10, according to Kpler and Platts cFlow ship and shipping data. Commodity tracking software.

 

OPEC Secretary-General Haitham Al-Ghais said in this regard that the alliance has no concerns, indicating that "the market is open to all players. Russia is a prominent player and a major player in the global oil markets, Malaysia and Asia are the main importers of oil and the market is open to all, and there is growth in demand that accommodates all of us." ".

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A rise in oil prices on the impact of a larger-than-expected decline in US crude inventories
 

Baghdad - people  

Oil prices rose today, Wednesday, amid concern in the markets about the tight supply in the United States, the largest oil consumer in the world, after data showed a larger-than-expected decline in its stocks of crude oil and gasoline.  

    

Brent crude futures rose 32 cents, or 0.4 percent, to $72.58 a barrel by 0022 GMT, and West Texas Intermediate crude futures rose 23 cents, or 0.3 percent, to $67.94 a barrel.  

  

Both contracts fell about 2.5 percent in the previous session amid signs that central banks may not have finished the cycle of raising interest rates.  

  

And market sources said, citing data from the American Petroleum Institute, that crude stocks fell by about 2.4 million barrels in the week ending June 23. Analysts had expected a decline of 1.76 million barrels.  

  

Gasoline stocks fell by about 2.9 million barrels, compared to an estimated decline of 126,000 barrels.  

  

This comes after a confrontation between Moscow and the private Russian military group, Wagner, raised fears of a possible disruption to oil supplies, and as markets await Saudi Arabia's pledge to cut oil production starting in July.  

  

Source: agencies   

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Oil prices are rising with the decrease in crude oil inventories in America

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2023-06-28 00:35

Shafaq News/ Oil prices rose on Wednesday, amid fears of supply shortages in the United States, the world's largest oil consumer, after data showed a larger-than-expected withdrawal of crude oil and gasoline inventories.

 

Brent crude futures rose 51 cents, or 0.7%, to $72.77 a barrel. At 04:10 GMT, West Texas Intermediate (WTI) crude futures rose 49 cents, or 0.7%, to $68.19 a barrel.

 

Both contracts fell about 2.5% in the previous session amid signs that central banks may not stop raising interest rates.

 

Crude stocks fell by about 2.4 million barrels in the week ending June 23, according to market sources, citing data from the American Petroleum Institute, and gasoline stocks fell by about 2.9 million barrels.

 

This comes after a clash between Moscow and the Russian mercenary group, Wagner, raised concerns about possible disruption to oil supplies, and as markets await Saudi Arabia's pledge to cut oil production starting in July.

 

On the demand front, European Central Bank President Christine Lagarde said on Tuesday that stubbornly high inflation will require the bank to avoid announcing an end to interest rate hikes. Higher interest rates could affect economic activity and demand for oil.

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With the global rise.. the rise in Basra crude prices

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2023-06-28 05:22

Shafaq News / Basra crude prices rose slightly on Wednesday, with global prices rising.

 

Basra Heavy crude prices rose 12 cents, or 0.17%, to reach $71.67.

 

Basra medium crude prices rose 12 cents, or 0.16%, to reach 74.82 dollars.

 

Oil prices rose today with the decrease in US crude and gasoline inventories, the largest consumer of oil in the world.

 

Basra prices are affected by the central raw materials of Brent, the American, Dubai and Oman crude, and it is sold to Asia according to the prices of Dubai and Oman, and it is sold to Europe according to the prices of Brent and sold to America according to the calculation of the prices of American crude.

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  • Time: 06/30/2023 16:22:40
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Survey: Iraq's increases in "OPEC" limited the impact of producer cuts
  
{Economic: Al Furat News} A recent survey, the results of which were published Friday, showed that oil production from OPEC countries decreased slightly in June, as increases from Iraq and Nigeria limited the impact of cuts announced by other producers, despite the broader OPEC + agreement and voluntary cuts. applied by several members of the group to support the market.
 

The survey found that the Organization of the Petroleum Exporting Countries (OPEC) pumped 28.18 million bpd this month, just 50,000 bpd less than the revised number for May.


The survey indicates little progress has been made by OPEC in limiting supplies ahead of an additional voluntary cut by Saudi Arabia, which takes effect in July, as part of the latest agreement the producers reached in June to support the market.

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  • Time: 07/04/2023 14:13:02
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Oil markets are waiting for big cuts in OPEC
  
{Economic: Al Furat News} OPEC and Aramco are preparing for future production cuts, when Asian demand growth weakens, with the aim of raising oil prices, but they know that the United States and its main allies in the West and East want the opposite.

A report published by the "Oil Price" website stated that Saudi Arabia is paving the way for significant cuts in OPEC production. And Saudi Arabia announced, on Monday, that it is extending its voluntary production cut, one million barrels per day, until August.

The Saudi Energy Ministry said it would extend oil production cuts in July, amounting to one million barrels per day, to August, to enhance "stability and balance in oil markets."

Saudi Arabia and Russia plan to reduce the amount of oil they pump to the world, in an effort to boost prices, which shows how two of the world's major oil producers are scrambling to increase income from fossil fuels, despite weak demand, according to the Associated Press.

And OPEC confirmed last week that the continuation of strong economic growth in Asia would be reflected in the growth in oil demand this year. Saudi Aramco added that China and India will drive oil demand growth by more than two million barrels per day in this period.

Just prior to these two comments, Saudi Energy Minister Prince Abdulaziz bin Salman said that OPEC and its allies are in a "state of readiness" amid divergence between the actual and future oil markets. He added that these measures will be "precautionary [...] an integral part of what we call proactive and preventive measures."

Observers believe that Saudi Arabia, which actually leads OPEC, is paving the way for more significant cuts in oil production with the aim of raising prices.

The decision gave a slight boost to oil prices, Monday, and comes after Riyadh announced a significant production cut, for the month of July, during the last meeting of the “OPEC Plus alliance”, which raised fears that gasoline prices in the United States may start to rise, according to Reuters. For the Associated Press.

This keeps the Gulf country's oil production at 9 million barrels per day.

And by predicting that global oil demand will be driven by China, India and other countries in Asia, Aramco and OPEC are paving the way for future supportive oil price cuts when this expected demand is not appropriate, according to Oil Price.

Meanwhile, Russian Deputy Prime Minister Alexander Novak said that his country will cut its oil production by an additional 500,000 barrels per day in August, according to Russian news reports.

The voluntary cuts come on top of previous cuts, which the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and allied producers led by Russia agreed to extend until next year.

Oil prices fell 1 percent on Monday, after concerns about the global economic slowdown and the possibility of raising US interest rates outweighed the decision of Saudi Arabia and Russia to further reduce their production in August, according to Reuters.

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Minister: The government supports increasing investment projects in the oil, gas and clean energy sectors

 
During the participation of the Deputy Prime Minister for Energy Affairs and Minister of Oil in the work of the international "OPEC" forum
 

Mubasher: Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul Ghani, said that the government supports plans to increase clean energy investment projects and areas, according to a strategic vision by concluding contracts with international companies specialized in this field to increase clean energy production.

 

Abdul Ghani stressed, during his participation in the work of the International OPEC Forum in Vienna, which is being held under the title "Towards a Sustainable and Comprehensive Energy Transition", that fossil energy cannot be dispensed with. Because of its importance in meeting the requirements of service sectors and basic needs of the countries of the world, noting the need to use advanced technology to reduce environmental damage and emissions.  

 

Abdul-Ghani affirmed the government's keenness to include in the ministerial curriculum plans to develop the oil sector, increase and expand the area of cooperation and contracting with international companies to invest in developing the oil industry, investing in associated and free gas, and reducing emissions.

 

The Minister of Oil said that the ministry launched the fifth and sixth licensing rounds, which include the development of a number of fields and exploratory sites with hydrocarbon oil and gas compositions, and invited international companies to participate in investment, development and production operations.

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OPEC agrees to consult with counterparts outside the organization to suppor t the stability of oil markets

 
On the sidelines of the eighth international OPEC symposium in the Austrian capital, Vienna
 

Riyadh – Mubasher: The energy and oil ministers of the Organization of the Petroleum Exporting Countries (OPEC) held a meeting to attend the eighth international OPEC symposium in the Austrian capital, Vienna, which is held annually.

 

During the meeting, the market conditions were reviewed, and they agreed to continue consultations with their non-OPEC counterparts, through the mechanisms actually in place, including the meetings of the Joint Ministerial Oversight Committee, and the ministerial meeting of OPEC and non-OPEC countries, in continuation of their continuous efforts to support the stability and balance of oil markets. According to a statement by the Saudi Ministry of Energy.

 

The Ministers expressed their appreciation to Saudi Arabia for extending its voluntary cut of 1 million b/d into August, in addition to the additional voluntary cut of 500,000 b/d of exports to the Russian Federation, and Algeria for its additional voluntary cut of 20,000. Barrels per day in August of 2023 AD.

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Reuters: Saudi Arabia raises the selling price of oil to Asian countries
 

Baghdad - Nas   

Saudi Arabia raised the selling prices of oil to Asian countries for the month of August, in light of the decision to extend the oil production cut.  

   

Reuters quoted sources as saying that the price of Arab light oil will rise by 20 cents in August, making the price of a barrel higher by $3.2 compared to the cost of the Oman/Dubai index.  

  

The prices of Arab Heavy and Arab Medium oil will rise by 20 cents, while the price of Extra Light brand fuel will remain unchanged.  

  

For its part, "Bloomberg" reported that the cost of "Super Light" oil will decrease.  

  

Saudi Arabia's national oil company, Saudi Aramco, sells 60 percent of its oil to Asia, with India, South Korea and Japan the largest buyers in the region.  

  

After the OPEC + meeting, which took place in Vienna on June 4, the Kingdom of Saudi Arabia announced a voluntary cut in oil production by one million barrels per day for the month of July, with the possibility of extending the measure, so that Saudi Arabia announced in early July that it would extend the voluntary cut in production until August.  

  

Source: TASS  

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  • Time: 07/07/2023 09:38:37
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Oil stability and indications of supply reduction
  
{Economic: Al Furat News} Oil prices witnessed little change today, Friday, while heading for weekly gains, as fears of raising US interest rates, which could reduce energy demand, were met with indications of a contraction in supply after a larger-than-expected decline in US crude stocks. .

And by 00:06 GMT, Brent crude futures fell one cent to $76.51 a barrel, while US West Texas Intermediate crude rose two years to $71.82 a barrel.

The two benchmarks are expected to rise about 2% for the second week in a row, according to Reuters.

And the US Energy Information Administration said on Thursday that crude stocks in the United States fell more than expected, while gasoline stocks recorded a significant decline after an increase in driving rates last week.

This comes as Saudi Arabia and Russia announced a new round of production cuts for the month of August. Total cuts are now more than 5 million barrels per day, the equivalent of a fifth of global oil production.

However, expectations that the Federal Reserve (the US central bank) will raise interest rates at its meeting on July 25-26 put a damper on oil prices.

Data on Thursday showed that the number of Americans filing new applications for unemployment benefits increased moderately last week, while the number of private sector jobs jumped in June, raising the possibility of the Federal Reserve raising interest rates this month.

Higher interest rates increase borrowing costs for businesses and consumers, which can slow economic growth and reduce demand for oil.

Sources close to OPEC said the group is likely to maintain its optimistic view of oil demand growth next year when it publishes its first forecast for 2024 this month, as it expects a slowdown compared to this year but the increase will remain above average.

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Reducing “OPEC +” production benefits Iraq .. Basra crude achieves a second weekly gain

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2023-07-08 02:10

Shafaq News / Basra crude achieved a second weekly gain in a row after Saudi Arabia and Russia cut supplies and US crude stocks fell.

 

Basra Heavy crude closed in its last session on Friday, at an increase of 72 cents, to reach 73.77 dollars, and recorded a weekly gain of 1.75 dollars, equivalent to 2.43%.

While Basra Intermediate crude closed in its last session, also at an increase of 72 cents, to reach 75.17 dollars, and also recorded weekly gains of 1.75 dollars, or the equivalent of 2.33%.

 

As for Brent crude, it closed in its last session of Friday, up by $1.95, to reach $78.47, and recorded a weekly gain of $3.57, or 4.77%.

 

West Texas Intermediate (WTI) crude closed in its last session of Friday, up by $2.06, to reach $73.86 per barrel, and recorded weekly gains of $4.7, or 6.8%.

 

Prices rose as Saudi Arabia and Russia cut supplies with a larger-than-expected decline in US crude stocks, which outweighed fears of the consequences of raising interest rates in the United States.

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OPEC reveals global demand for oil until 2045
 

Baghdad - Nas   

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, said, on Tuesday, during an oil and gas conference in Nigeria, that global demand for energy of all kinds is expected to rise by 23 percent until 2045.  

 

Executives in the oil sector and other officials from OPEC have repeatedly indicated the need to continue pumping investments into the oil sector, warning that stopping it will lead to higher prices.  

  

Al-Ghais also said that calls to limit new oil projects or stop financing them are unrealistic and unwise, but acknowledged the need to use technology to tackle persistent fossil fuel emissions.  

  

He added, "The global demand for energy is expected to increase by a significant rate of 23 percent in the period until 2045, which means that we will need all forms of energy."  

  

He also said, "We will need innovative solutions such as carbon capture and storage, hydrogen projects, as well as the circular carbon economy, which received positive support from the G20."  

  

He added that the global oil sector needs to invest $12.1 trillion during the same period, but it is not yet on its way to reach that level of investments.  

  

Sources close to OPEC said that the organization is likely to maintain its optimistic forecast for oil demand growth for next year in a report to be published this month, as it expects demand to slow compared to the current year, but it will remain above average.  

  

OPEC's forecast for 2024 is likely to be lower than the growth it expects for this year, of 2.35 million barrels per day, or 2.4 percent, a remarkable rate as the world emerges from the emerging coronavirus pandemic.  

  

Source: Reuters  

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The latest OPEC survey .. Iraq increases its oil production slightly during the month of June

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2023-07-12 05:37

Shafaq News/ OPEC and its allies kept their production of crude oil almost unchanged in June, with the implementation of large production cuts and additional restrictions by Saudi Arabia and Russia scheduled in the coming weeks, while Iraq increased its production slightly.

 

According to a survey prepared by S&P Global Commodity Insights, it was found that the 13-member Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, increased their production by 10,000 barrels to 41.34 million barrels per day.

 

This followed a significant drop of 670,000 bpd in May to its lowest level in 19 months, with seven countries joining Russia in introducing voluntary cuts. These cuts will remain in place until the end of 2023.

 

Saudi Arabia announced an additional cut of 1 million barrels per day in July and August at least, while Russia, which has already pledged to cut 500,000 barrels per day, said it would cut crude oil exports by 500,000 barrels per day next August.

 

The 13 OPEC nations increased their production by 70,000 bpd in June to 28.23 million bpd, led by modest increases in Iraq, Iran, Nigeria and Venezuela.

 

OPEC production growth was partially offset by a drop of 60,000 bpd from non-OPEC coalition members, which collectively pumped 13.11 mb/d.

 

Including voluntary cuts, the OPEC+ production shortfall against quotas was 1.1 mb/d - a compliance rate of 118.63%.

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  • 3 weeks later...

Oil achieves new gains for the fifth week in a row

Thanks to the recovery in demand and supply cuts
 
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Zagros Arabia - Erbil

Today, Saturday (July 29, 2023), oil prices witnessed an increase, recording gains for the fifth consecutive week, amid optimism among investors that prices will continue to rise, thanks to the recovery in demand and supply cuts.

 

Both benchmarks rose about 5% this week, supported by supply cuts announced by the OPEC+ alliance earlier this month. The two benchmarks are on track to record gains of 13% during the month

 

Brent crude rose 75 cents to $84.99 a barrel at close on Friday, while US West Texas Intermediate crude rose 49 cents to $80.58 a barrel.

 

And expectations of demand growth increased after US gross domestic product grew in the second quarter at a rate of 2.4%, which exceeded expectations and supports the view of Jerome Powell, Chairman of the Federal Reserve, according to which the economy is capable of achieving the so-called “soft landing.”

 

The appetite for risk in financial markets in general increased due to growing expectations that large central banks such as the US Federal Reserve and the European Central Bank are close to ending the monetary tightening cycle, which reinforced expectations for global growth and energy demand. 

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Despite the huge oil price gains caused by Russia's war in Ukraine last year, OPEC members are reaping hugely disproportionate returns from a shrinking basket. Indeed; The alliance is under severe pressure due to the decline in oil demand and lack of coordination among members, and some experts believe that “OPEC Plus” is at risk of collapsing in the near term.

 

The “Oil Price” website published a report discussing the future of the OPEC Plus alliance. Considering that these are the best and worst times for OPEC; Depending on which member you are asking about.

 

The site said, in its report, that 2022 was a distinguished year for “OPEC Plus.” with nominal revenue at its highest level since 2013; to reach $888 billion for 2022, according to figures from the US Energy Information Administration; They increased by a whopping 54 percent from 2021 levels and slightly higher than the 2014 total, after which oil prices began their long decline. However, the real numbers are not rosy; Once inflation is factored in, prices are actually down by about a fifth compared to 2014, though it's still a significant 43 percent increase from last year.

 

And the site stated that “OPEC” revenues may appear to be on a significant upward trend after the epidemic thanks to high oil prices, but the actual number of barrels being sold is still alarmingly low. “While the amount increased last year, it remained below pre-pandemic levels and among the lowest in any year so far this century,” Bloomberg reported earlier this month. “In fact, Taking all factors into account, real per capita export earnings in 2022 are lower than they were in 2009, when global GDP shrank and nominal oil prices fell by about 40 percent.

 

The site stated that “OPEC” is concerned for understandable reasons. In the wake of last year's war windfall gains, Saudi Arabia - the group's de facto leader - pushed for sharp production cuts in order to keep oil prices high, but a further drop in the amount of barrels produced and sold backfired for the government.

 

Saudi Arabia. this week only; The International Monetary Fund cut its growth forecast for Saudi Arabia from 3.2 percent to just 1.9 percent, citing “production cuts announced in April and June in line with an agreement through OPEC Plus” as a driving factor for the revised forecasts, and this decline represents a complete turnaround for Saudi Arabia. , which was the fastest growing economy

The site added that the burden of production cuts - and the resulting economic blow - is not borne equally by the “OPEC Plus” members. Greg Priddy, a consultant at Spot Run Advisory and a senior fellow at the Center for the National Interest in Washington, D.C., told Middle East Eye earlier this month: “Russia has been pretty much cheating and avoiding cuts in Saudi Arabia. ". In fact, the International Energy Agency stated that Saudi Arabia is on its way to losing its position as the largest oil producer in “OPEC Plus”; Where Russia is set to overtake it.

 

The site stated that “OPEC” needs Russia in order to maintain its ability to control oil prices. As “Bloomberg” published a report in which it said that “a growing number of OPEC members have far exceeded their prime in terms of production capacity anyway, and they have stumbled differently due to war, sanctions and mismanagement.”

 

 But the shift of power away from Saudi Arabia and towards Russia raises a major problem for the group's cohesion, and perhaps its longevity.

 

The site concluded its report with Bear Likander's statements, director of the Clean Energy Transformation Foundation, which he made last week for the CNBC; He said he was "very sure" that the OPEC Plus alliance will be broken, adding that "the more negative growth there, the less your cooperation." If the OPEC Plus alliance, which currently controls about 40 percent of global crude oil, is separated, oil prices may decrease to $ 35 a barrel.

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The Deputy Prime Minister for Energy Affairs and Minister of Oil affirmed the support of the Ministerial Committee to Monitor Production in OPEC + to keep the production policy unchanged, with an emphasis on closely evaluating the conditions of the oil market.


Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani said during his participation in the forty-ninth meeting of the Joint Ministerial Committee for Production Monitoring, in the “OPEC Plus” group, that the meeting included the committee’s review via videoconference of crude oil production data for the months of May and June of 2023 AD, noting The ministers commended the commitment of the OPEC member states and allied producing countries to the declaration of cooperation, and urged all participating countries to continue support and commitment, in order to achieve balance and stability in the oil markets. 

 

While the Director General of the Oil Marketing Company "SOMO", Ammar Abd Al, confirmed that maintaining the production policy of OPEC Plus aims to achieve more stability in the oil market.


A spokesman for the Ministry of Oil, Assem Jihad, said that the Ministerial Committee for Production Monitoring took this measure after reviewing the data and developments in the oil market during the past months, and that it will not hesitate to take new measures to ensure more stability and balance for the oil market, and that the ministers of the “OPEC Plus” alliance are holding meetings.

 

And meetings whenever circumstances and necessity necessitate that, stressing that the procedures and agreements of OPEC Plus have contributed to achieving more stability and balance in the face of geopolitical, security, health, economic and other challenges.

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Saudi Arabia extends the reduction of its oil production

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2023-08-03 10:55

Shafaq News / The Saudi Ministry of Energy announced today, Thursday, the extension of the voluntary oil production cut of one million barrels per day, for an additional month, indicating the possibility of a new extension after that, or an increase in this cut, as part of an attempt to support crude prices.

 

 

An official source at the Ministry of Energy announced, in a statement published by the Saudi Press Agency, "the extension of the voluntary cut of one million barrels per day, which began to be implemented in July, for another month, to include the month of September, with the possibility of extending or extending and increasing this cut."

 

The same source explained, according to what was reported by the Saudi Press Agency, that "this reduction is in addition to the voluntary reduction that the Kingdom had previously announced in April 2023 and extends until the end of December 2024."

 

He stressed that this additional voluntary reduction comes to reinforce the precautionary efforts made by the “OPEC Plus” countries with the aim of supporting the stability and balance of oil markets.

 

In April, several OPEC + countries decided to voluntarily cut production by more than one million barrels per day, in a surprising move that supported prices for a short period.

These efforts did not succeed in raising prices in the manner targeted by the producing countries, which are part of this alliance.

 

Since the beginning of the year, the price of a barrel of Brent crude has fallen by 11 cents, due to the slow economic recovery in China, according to Agence France-Presse.

 

This decline reflects the impact of a decision by a coalition of G7 countries, the European Union and Australia to set a price ceiling in December 2022.

 

Saudi Arabia is counting on high oil prices to finance an ambitious agenda through which it wants to move away from dependence on fossil fuels. 

 

Saudi oil giant Aramco reported total profits of $161.1 billion last year, allowing the kingdom to achieve its first annual budget surplus in nearly a decade.

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Iraq: The Ministerial Committee in OPEC + decides to keep the oil production policy unchanged

 

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2023-08-04 09:16

Shafaq News/ The Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul-Ghani confirmed, on Friday, the support of the Ministerial Committee to monitor production in OPEC + to keep the production policy unchanged, with an emphasis on closely evaluating the oil market conditions.

 

This came during his participation today in the 49th meeting of the Joint Ministerial Committee to Monitor Production, in the "OPEC Plus" group.

 

 

Abdul-Ghani said in a speech he delivered during the meeting via "video conference", that the meeting included the committee's review, via video call, of crude oil production data for the months of May and June of 2023.

 

He pointed out that the ministers praised the commitment of the OPEC member states and allied producing countries to the declaration of cooperation, and urged all participating countries to continue support and commitment, in order to achieve balance and stability in the oil markets.

 

Meanwhile, the Director General of the Oil Marketing Company "SOMO", Ammar Abd Al, confirmed that maintaining the production policy for OPEC Plus aims to achieve more stability in the oil market.

 

In turn, the spokesman for the Ministry of Oil, Assem Jihad, said: The Ministerial Committee for Production Control took this measure after reviewing the data and developments in the oil market during the past months, adding that it will not hesitate to take new measures to ensure more stability and balance for the oil market.

 

He continued by saying that the ministers of the "OPEC Plus" coalition hold meetings and meetings whenever circumstances and necessity necessitate that, stressing that the procedures and agreements of OPEC Plus have contributed to achieving more stability and balance in the face of geopolitical, security, health, economic and other challenges.

 

The OPEC Plus alliance, which includes OPEC member states and non-member countries, led by Russia, agreed last June on a new target level for production at 40.46 million barrels per day from 2024 until the end of 2024.

 

According to “Reuters” calculations, “OPEC +” will have reduced its oil production for the year 2024 by 1.4 million barrels per day, compared to current production levels.

The statement stated that Russia, Angola and Nigeria will witness a significant reduction in the targeted oil production in 2024.

 

For his part, Russian Deputy Prime Minister Alexander Novak confirmed that his country will extend its voluntary production cut of 500,000 barrels per day until the end of 2024.

 

The official Saudi Press Agency also quoted the Ministry of Energy as saying that, as a precautionary measure, the Kingdom will extend its voluntary cut of 500,000 barrels per day until the end of December 2024 in coordination with some countries participating in the OPEC Plus agreement, noting that this voluntary cut from the required production level is according to Agreed at the thirty-fifth ministerial meeting of OPEC+ on June 4, 2023.

 

In its monthly report for July, OPEC kept the global economic growth forecast unchanged at 2.6% in 2023, and expected global economic growth of 2.5% in 2024.

 

OPEC raised its forecast for global oil demand growth of 2.4 million barrels per day in 2023, and expected global oil demand to grow by 2.2 million barrels per day in 2024.

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