A rise in oil prices with the start of Chinese demand in recovery and US inventories rise
The US Petroleum Institute (API) announced a sudden increase in crude oil this week by 7.757 million barrels, compared to analyst’s expectations by 1.367 million barrels
US crude inventories lost about 72 million barrels since the beginning of 2021 and about 14 million barrels since the start of 2020
Last week, API announced an increase in crude oil inventories amounted to 1.080 million barrels after analysts expected a decline of 1.558 million barrels
API also announced a drop in gasoline inventories by 5.053 barrels in the week ending on April 8 after the decline of last week that amounted to 543,000 barrels
The outputs of distillation inventories witnessed a decrease in stock loading reaching 4.961 million barrels a week after last week’s increase which amounted to 593, 000 barrels
Cushing witnessed an increase of 375,000 barrels this week
Cushing stocks rose to 25,887 million barrels from April 1, according to Energy Information Management data
down from 59.2 million barrels at the beginning of 2021, and a decline of 37.3 million barrels at the end of 2021
Topic
Oil prices this week
After the fall of last week, oil prices started again on the background of hopes of Chinese demand
recovery soon and OPEC warnings that it would be impossible to replace 7 million barrels from oil exports and Russian products daily
On Tuesday, oil prices were traded by a sharp rise due to a number of bullish catalysts
which include OPEC warnings to the European Union that it would be almost impossible to compensate Russian crude for penalties
and Russia’s production decrease of crude oil so far in April and relieving the closure in Shanghai even with the survival of Covid cases at record levels
Western Texas mediator crude was traded at 6.54% at $100.50 a barrel in the middle of the day
– down by $0.30 a barrel a week
Brent crude has been trading at a rise of 6.10% at $104.50 a barrel a day with a decrease of $1 a barrel a week
At the end of the day, West Texas mediator was trading at $100.70 (+6.81%), with Brent crude trading at $104.80 (+6.73%)
artical name A rise in oil prices with the start of Chinese demand in recovery
Oil production rates
US crude oil production rose to 11.8 million barrels a day for the week ending on April 1
It is the second consecutive increase after months of recession
The production of crude oil in the United States is still down by 1.3 million barrels a day from pre-pandemic times
Latest Decisions of Movable Companies for Oil Market
Shefron, the US oil company (listed in the New York Stock Exchange under the code NYSE:CVX)
increased its foothold at Faka Murray Oil Exhibition in Argentina
where it participated in the Trapial Este concession as an exception and exclusive holder
CNOOC, the Chinese offshore oil producer (HKG:0883) said that it expects to collect 32 billion yuan ($5 billion) in Shanghai shares
just 6 months after the company’s removal from the New York Stock Exchange because of suspicion of the Chinese army
French energy giant Total Energy (NYSE:TTE) said that it will expand its production in the Louisiana LNG project in Louisiana
run by Simberra, the expansion of the fourth train capacity of 6.75 million tonnes annually
artical name A rise in oil prices with the start of Chinese demand in recovery
Oil sector’s updates
China’s lengthy closures affected demand
Chinese refining companies are working to reduce productivity, as closures continue to disrupt demand for products across the country
with Shanghai surviving closed while South Guangzhou is expected to go on the same track soon
The United States warns India from Russian Purchases again
US President Joe Biden warned India saying that buying more oil from Russia is not in the “interest of the country)
and that comes on the back of the purchase of Indian refining companies of 16 million barrels
from the Ural Mountains since the beginning of the Ukrainian Russian War
Iran separates the conditions for the return of the common comprehensive work plan
A group of more than 250 Iranian lawmakers issued a set of preconditions for the 2015 nuclear agreement
including guarantees that the United States will not withdraw from the deal and will not restrict freedom of Tehran to sell its oil and return home
US gas inventories drop to their lowest level in 3 years
Paid in an unprecedented liquefied natural gas exports from the United States
gas inventories in the United States ended Winter at 1.382 billion cubic feet only on April 1
the lowest level in 3 years, pushing Henry Hub prices to the top and decline along the futures curve
Russian oil ban on the agenda of the next round of sanctions
According to media reports, the European Commission forms proposals for an oil embargo from the European Union on Russia
although many governments object to a comprehensive ban and may instead choose a dedicated tariff
Italy signs a new agreement to supply in Algeria
Italy signed an agreement with the Algerian government to increase its natural gas imports by 40%
as the country’s largest oil company ENI (NYSE:E)
witnesses gradually higher flows across the Transmed pipeline
up to 9 billion cubic meters annually from additional gas by 2023-2024
OPEC decreases oil demand forecasts for 2022
OPEC has trimmed its forecast for oil demand growth this year, referring to the impact of the Russian invasion on Ukraine
the increase is expected to reach 3.67 million barrels a day in 2022
down by around 500,000 barrels a day compared to previous expectations
The electricity network in Nigeria collapses again
Nigeria’s national electricity grid collapsed for the second time in a month
raising concerns that rising diesel prices affect energy saving throughout the country which is used to bite power outages
An Indian refinery faces financing problems
Several Indian and foreign banks have stopped for a commercial credit for Nayara Energy
a refining company running Vadinar refinery which its power reaches a 400.000 bpd and is co-owned by Rosneft Russia (MCX:Rosn)
forcing them to sell more products locally
Naimax suspends trading of Russian platinum and palladium
The New York Trade Exchange noted that it would stop platinum and palladium trades produced by the two Russian refineries
after a similar move from London markets, prompting the palladium to rise by 5% during the week
artical name A rise in oil prices with the start of Chinese demand in recovery