A large drop in inventories leads to a rise in oil prices

A large drop in inventories leads to a rise in oil prices

A large drop in inventories leads to a rise in oil prices

The American Petroleum Institute (API) announced a large drop in crude oil this week worth 3.799 million barrels
while analysts expected a decline of 110.000 barrels

The increase came at a time when the Ministry of Energy released 6.9 million barrels
of strategic oil reserves in the week ending June 24


US crude inventories have lost about 71 million barrels since the beginning of 2020, according to API data


Last week, API announced an increase in crude oil inventories of 5.607 million barrels
which is the largest increase since February after analysts expected a decline of 1.433 million barrels


This week, API announced an increase in gasoline inventories amounting to 2.852 million barrels for the week ending on June 24
compared to the increase of last week which amounted to 1.216 million barrels


The inventories of distillation products witnessed an increase in inventories of 2.613 million barrels a week
compared to a decline of 1.656 million barrels last week


Cushing witnessed a decrease of 650.000 barrels this week, which doubled the decline last week
Cushing’s official data for the week ending on June 17 weren’t available at the time of publication



A change in oil prices this week

Oil production rates

Last decisions of the driving companies for oil market

Oil sector’s updates



A change in oil prices this week

West Texas Intermediate crude rose to 2.06% on Wednesday during the period before the issuance of data
up to $111.18 a barrel by the middle of the day due to new fears in the market
that OPEC may be closer to its maximum capacity than previously believed

Brent crude was traded by 2.63% during the day at $118.10- an increase of approximately $8 a week.

At the end of the day, West Texas Intermediate crude was trading high at $111.70
(+1.94%),while Brent crude was traded at $118.00(+2.49%)





Oil production rates

US crude oil production data for the week ended on June 17 was not available after the Energy Information Administration stated
that the voltage height on June 17 prevented it from publishing new data


Conditions of oil markets this week

The conflict is expected to exacerbate two competing governments in Libya
with calls for the replacement of the president of the National Oil Company, Mustafa Sanallah
Meanwhile, the country’s skirmishes do not show any sign of surrender


If the National Oil Corporation in Libya closed all ports in Sirte Bay
the total exports may decrease to 400.000 barrels a day
bringing the output of the parked production capacity to 800.000 barrels a day


The political talks held in Geneva between the governments of Tripoli and Benghazi miserably failed earlier this month
leaving the possibilities of reaching a comprehensive settlement at a low point


Even before the National Oil Corporation warned, Libyan production declined to 700.000 barrels a day in recent times
which is nearly half of the production rates earlier this year
as the main production fields are still banned by the Guard of Oil Facilities





Last decisions of the driving companies for oil market

The Great Chinese Oil Company PetroChina (SHA:601857) is studying to sell its gas projects in Australia and Canadian oil sands, which turns money away from the judicial states that may impose sanctions on China


In a move to protect Iraqi drilling contracts, the American Schlumberger Corporation for oil services (listed on the New York Stock Exchange :NYSE:SLB) said it will not apply for any tenders for oil and gas exploration in Iraq and Kurdistan


The Brazilian Oil Company Petrobras (listed on the New York Stock Exchange under the symbol:NYSE:PBR)
elected its second executive president in two months
as Ciao Pais de Andradi faces a hard battle to stop the high rise in transport fuel prices

artical name A large drop in inventories leads to a rise in oil prices




Oil sector’s updates


Western Powers are studying the ceiling of Russian oil prices

The group of seven countries have agreed to explore a ban on the transfer of crude that was sold over the specified price, although analysts’ warning that such measures significantly increase the possibility of sudden discounts in supplies from Russia


The summit of the seven may have detonated OPEC’s vision

At the summit of the seven group in Bavaria this week, the French President Emmanuel Macron referred to the Presidents of the United Arab Emirates and the Kingdom of Saudi Arabia, saying that both of them told him that he could hardly increase production in the short-term


Iranian nuclear talks may resume this week

In the wake of a European endeavor to revive the long-standing negotiations on Iran’s nuclear program, indirect talks between Tehran and Washington are scheduled to resume in the coming days in the Qatari capital, Doha


The gradual disposal of fossil cars may falter in the European Union

According to Reuters reports, at least five countries (including Italy and Portugal) want to postpone the European Union’s deadline for the year 2035 to ban sales of gasoline and diesel cars, and postpone it until 2040 amid widespread fears of offering slower chargers than supposed.


Libya risks another wave of the major force raised by the protests

The National Oil Corporation in Libya can announce a major force within the next two days unless it resumes production operations and oil stations in Sirte Bay, where it hosts four main stations for the export of crude oil (Sidr, Ras Lanuf, Al Birqa and Al Zouinina).



Kurdistan is witnessing an escalation in missile attacks

The khor Moore Fall in Kurdistan witnessed the third missile attack in less than a week, with the spread of missile strikes on the Kurdish origins amid the intensification of the conflict between the federal authorities in Baghdad and the separatist government in Erbil


The US Environmental Protection Agency seeks to tighten ozone restrictions on drilling workers

and The Biden Administration is likely to prolong the procedures for allowing and enhancing government supervision, to tighten the requirements for the anti-fog in the Bermean Basin, where the Ozone levels have witnessed higher than usual amid intensive drilling operations


Nigeria falsifies it to make it

Although its oil production is less than 500,000 barrels a day than 1.8 million barrels a day which is required to maintain a tie in its budget, the Nigerian Ministry of Oil said that the African country will be able to fulfill its productive share of OPEC by the end of August


Reducing the intensity of energy lack in India thanks to wind and water energies

The arrival of the monsoon season to India, as it is clear from the high production rates from water power plants and wind energy, reduced the pressure on Indian energy generation, as the network frequency decreased to a minimum of only 9.8% of time in May


The naval Uruguay may be the next hotpoint

Now that the wild cat Venus, which was dug in naval Namibia, created shock waves throughout the market

The Great British Company (LO:Shell) and the American independent Apache (Nasdaq:APA) won the rights to excavate three marine blocks in Uruguay, in an effort to find similarities with the Giant Namibian discovery


High diesel prices in Latin America come at the worst times

While the agricultural forces in Latin America are heading to the harvest season
the price of diesel is still hovering around its highest levels ever registered in the middle of the month
as Brazilian CFR shipments are estimated at $183 a barrel

artical name A large drop in inventories leads to a rise in oil prices

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