Oil is falling as US oil inventories increase

Oil is falling as US oil inventories increase

Oil is falling as US oil inventories increase

The American Petroleum Institute (API) announced that this week’s oil inventory increased by 1.618 million barrels
compared to analysts’ expectations of 1.2 million barrels


US crude inventories have lost about 73 million barrels since the beginning of 2021 and about 16 million barrels
since the beginning of 2020, according to the data of the American Petroleum Institute


Last week, API announced a greater decline than expected in crude oil inventories of 3.479 million barrels
after analysts expected a decline of 1.167 million barrels


This week, API announced an increase in gasoline inventories to 823 thousand barrels for the week
ending on April 29 – after a decrease in the previous week of 4.50 million barrels


The inventories of the distillation products witnessed an increase in stocks of 662 thousand barrels
for the week compared to a decrease of last week by 4.457 million barrels


Cushing witnessed an increase of 92 thousand barrels this week
Cushing inventories rose to 28.829 million barrels as of April 29
according to Energy Information Management data – a decrease of 59.2 million barrels
at the beginning of 2021, and a decrease of 37.3 million barrels at the end of 2021



A change in oil prices this week

Weekly oil production rates

Oil sector’s updates





A change in oil prices this week

On Tuesday, oil prices fell after short sales on Monday
as the Chinese Central Bank promised to provide monetary policy support for its economy after the closure


Price movements are still evidence of excessive fluctuations in the market after Covid-19 and after the Russian invasion


In the middle of the day, West Texas Intermediate crude was trading low 3.40% at $99.58 a barrel a day
a decrease of about $3 a barrel a week
Brent crude was traded low 3.40%a day at $102.30 a barrel a day
and a decrease of approximately $4 a barrel a week


At the end of the day, West Texas Intermediate crude was circulating for $100 (-2.97%)
while Brent crude was traded at $102.70 (-3.07%)

 artical name Oil is falling as US oil inventories increase



Weekly oil production rates

The US production of crude oil remained at 11.9 million barrels
a day for the third consecutive week for the week ending April 29
Crude oil production in the United States is still low by 1.2 million
barrels a day than the pre-epidemic period


Last decisions of the driving companies for oil market

The Norwegian National Oil Company, Equinor (included on the New York Stock Exchange
under the code:NYSE:EQNR) has sold its share in the Norwegian Ekofisk
giant field to Svar Energi backed by private stocks, along with 19% in the Martin Lang field
with a total of 1 billion dollars


The Canadian government was quick to hold talks with the Spanish company Ripsol
(BME:Rep) and the Canadian company Pieridae Energy (PEA) to build 2 liquefied natural
gas stations on the Eastern Coast of the country
and simultaneously negotiate with potential European buyers


Controls of the Occidental Petroleum Company
(listed on the New York Stock Exchange under the Symbol:NYSE:Oxy)
objected to a proposal from the Dutch activist investors group
“Follow this” to expand the goals of the current oil company to reduce carbon emissions

 artical name Oil is falling as US oil inventories increase





Oil sector’s updates

Fears of economic slowdown affect the oil market

The demand for oil is exposed to threats due to the prolonged closures in China
and raising interest rates because of inflation
and fears that Europe may fall into recession if the Russian – Ukrainian war continues to escalate
The decline in inventories, with the United States’ willingness to see the decline in shares through
the crude/productive oil spectrum, contributed to some support
but it failed to prevent Brent Crude futures from decline towards the level of $100 a barrel


Saudi Arabia blames the rise in fuel prices for a lack of investment

The inaccurate investment in global refining energy was one of the main engines in the high prices of products
according to Saudi Energy Minister Prince Abdulaziz bin Salman
repeating the claim that the lack of investment prevents oil markets from re-balance


The European Union offers more money to the challenging countries

The European Commission plans to provide more money to the Eastern European Union countries
which have so far objected to a ban on Russian oil (Hungary, Slovakia and the Czech Republic)
to modernise oil infrastructure, although the exemptions from the sanctions have not yet been agreed


A decline in the futures contracts for the US Nat gas stock

With meteorological experts amending their expectations for the month of May
which was more moderate than expected and the European weak demand amid high gas stock
regeneration rates, gas futures in Henry Hub decreased for the first month by about 15%
to $7 per a million of British thermal units




The European Union drops shipping sanctions against Russia

The European Union is expected to cancel the proposed ban on the European Union’s ships
from transporting Russian oil anywhere in the world, as Greece, the largest navigation country in the continent
threatens to use the veto against sanctions proposal if preserved


Venezuela begins refining the heavy Iranian oil

Venezuela began importing heavy Iranian crude to feed its local refineries
which expanded the exchange agreement between the 2 countries
which witnessed for the first time the import of PDVSA capacitors to reduce its heavy wax raw


Germany reaches the negotiation barrier with Qatar

According to media reports, Germany and Qatar faced difficulties in talks regarding the LNG deal
as Berlin, which reduces emissions, is still cautious against adhering to 20 years of contracts
while Qatar opposes any form of resale item


Iraq is strongly affected by the Kurdish crude

The Iraqi federal authorities said that they will begin to put oil production
almost entirely from the independent Kurdistan region
under its control after the talks with the region’s government in Erbil stalled
with the allocation of oil revenues for the main disagreement point





The United States is considering reviving the oil spill tax on crude oil exports

Biden Administration appeals a judicial ruling issued in 2019
which concluded that American crude exporters should be exempt from the 9%
oil leakage cleaning tax for each barrel, saying that the decision prohibits an important source of financing


South Sudan wants to nationalize its oil industry

The government of South Sudan plans to take over the operations of international oil companies
in the county after the end of their production sharing contracts
which mainly affect the Chinese company CNPC(SHA:601857) and the Malaysian Petronas Company


Petrobras pledges to maintain fuel pricing on the market

The newly appointed CEOs at the Brazilian National Oil Company Petrobras
(listed on the New York Stock Exchange under the code NYSE :PBR)
stated that they will adhere to the pricing policies directed towards the market
raising the prices of diesel by 9%, despite the general criticism coming from President
Jayer Bolsonaro who wants to determine the ceiling of fuel prices

Israel sees another marine discovery of gas

The ENOG gas producing company, ENOG, has announced that it had achieved another trade
discovery of gas off the coast of Israel, although 8 billion cubic meters of extractable gas reserves
were just a small part of the estimation of the resources of 21 billion cubic meters before drilling

 artical name Oil is falling as US oil inventories increase

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