Oil inventories fell by 816.000 barrels.. And prices rise

Oil inventories fell by 816.000 barrels

Oil inventories fell by 816.000 barrels.. And prices rise

Oil inventories fell by 816.000 barrels.. And prices rise: On Tuesday 10th August 2021, the (API) declared a drawback by 816.000 barrels by the week ending on August 6,
oil stockpiles fell by more than 50 million barrels in 2021, according to the API.

Analysts expected a drop in stockpiles by 1.050 million barrels this week.

The API declared a drop in stockpiles by 879.000 barrels for the previous week which is greatly less than analysts’ 3 million barrels expectations.

The API also declared a drop in gasoline stockpiles by 1.114 million barrels by the week ending on August 6
compared with the previous week’s drop in stockpiles by 5.751 million barrels.

Distillates witnessed a rise by 673.00 barrels throughout the week which offset the previous week’s drop by 717.00 barrels.

Cushing lowered by 413.000 barrels this week after it rose by 659.000 barrels for the last week.

Oil prices for the week

West Texas Intermediate crude rose on Tuesday after it lowered on Monday as fears from Delta variant drew back and demand oil improves in Asia and the USA.

West Texas Intermediate crude rose 3% by Tuesday afternoon before data publishing,
to settle at 68.48$ per barrel by midday, showing a rise by 2$ per barrel but less by 2$ than the previous week’s same time.

Brent crude rose 2.51% to settle at 70.77$ per barrel, while it dropped 2$ per barrel in the previous week.

Oil production rates for the week

While U.S. oil stockpiles continue to drop, the production kept rising from 11 million barrels at the year’s beginning to reach 11.2 million barrels per day for now and it settles for the second week in a row.

Libya’s oil production lowers by 70.000 barrels

Libya’s crude oil production lowered on Monday between 60.000 to 70.000 barrels as crude oil pumping
lowered because of leaking in one of the pipelines in a field, according to the national oil corporation.

The leak occurred in a pipeline by 30 inches length links between Galo oil field and Waha oil field forcing the national oil
corporation to lower production till damages were estimated and repairs were conducted.

NOC hasn’t declared any schedule for reproduction yet but they said that they contacted oil and finance
ministries to get the money needed for reforms and the money also needed to avoid any cut in production because of infrastructure weakness.

Libya’s oil production improvements in the last few months

Libya surprised a lot of market supervisors and OPEC by managing in just a few months getting its production rates back to 1.25 million barrels per day,
while it was less than 100.000 barrels per day in September 2020.

Producing 1.25 million barrels is the same production Libya was pumping before oil ports surrounding that lasted for eight months in January 2020.

After surrounding was left in September and fire seizing in October Libya’s oil production didn’t stable in 2021 due to petroleum constructions guards
protests for not being paid their salaries and lack of money needed for maintenance and  repairs in oil sector infrastructure     

“Libya would raise its production to 1.6 million barrels per day by the first half of 2022
if the industry had the funding needed.” Muhammad Oun oil minister in a statement, last month.

At the current time, the African member not included in OPEC’s reductions is producing about 1.2 million barrels per day.

According to OPEC’s latest monthly report, Libya’s crude oil production average reached 1.163 million barrels in June while it was 1.157 million barrels in May.

The oil industry in Saudi Arabia backs to flourish

Aramco witnesses a 300% rise in profits at the same time Sadia is witnessing improvement in oil demand
as it was affected by the pandemic in the last year.

The rise in prices by 30% since the beginning of the year and as demand for oil improves
the oil industry in Saudi Arabia is improving powerfully in 2021.

The oil and gas industry has witnessed progress after the 2020 recession due to efforts of immunization against Covid-19.

But lately, restrictions were lowered around the world and the economic activity is being backed.

Aramco declared a rise of 25.5 billion dollars or 288% in the second quarter of 2021,
this came after Exon Mobil declared a rise of 4.7 billion dollars in the second quarter of the year,
Royal Dutch Shell’s profits rose which indicates flexibility in the oil industry.

Saudi oil industry effect on other industries

Oil industry recovery affected Saudi’s economy as a whole negatively;
it witnessed progress by 10.1% in the non-oil sector in the second quarter.

The international fund bank expects progress of 2.4% in Saudi’s economy.

The progress would happen fast if the government decided to lower covid-19 restrictions and increase production.

As prices hit high since the beginning of the year’s begging and producers lowered production to keep the rise in prices,
OPEC decided in the last month to support oil supplies from August in response to demand before prices would inflate.

While Saudi Arabia continues to raise its oil exports,
the demand in China is drawing back because of the new closures around the country.

Russia and the USA are offering more competitive oil prices, and Saudi oil seems less attractive.

Saudi Arabia will have to offer competitive prices if it wishes to get more demand in all main market’s sides in Asia,
as many countries set strict measures due to Delta variant spread.

With the existence of cheaper competitors in the market, Saudi Arabia finds it difficult in maintaining its attractiveness in Asian markets.

Oil inventories fell by 816.000 barrels.. And prices rise

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