Oil prices are not affected by the weak performance of OPEC

Oil prices are not affected by the weak performance of OPEC

The American Petroleum Institute (API) announced an increase in crude oil this week by 736,000 barrels
while analysts expected a decline of 1.2 million barrels


The small increase comes at a time when the Ministry of Energy released 7.7 million barrels
of strategic oil reserves in the week ending on June 10


US crude stocks have declined by about 74 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, the American Petroleum Institute reported an increase in crude oil inventories of 1.845 million barrels
after analysts expected a decline of 1.8 million barrels


This week, the API announced a decline in gasoline inventories by 2.159 million barrels for the week ending on June 10
compared to the previous week’s increase of 1.821 million barrels


The inventories of distillation products witnessed an increase in the stock of 234.000 barrels during the week
compared to the increase of last week, amounting to 3.376 million barrels


This week, Cushing witnessed a decrease of 1.067 million barrels
Cushing’s inventories fell to 23.441 million barrels last week, as of June 3
according to Energy Information Management data, a decline of more than a half
from 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

Oil prices were particularly volatile on Tuesday, as OPEC reported
that May’s production wasn’t only less than its share, but was less than April
This usually leads to a significant increase in prices, but high inflation
backup energy deficiency and Covid battle in China kept the gains


West Texas Intermediate crude was trading low 0.22% on Tuesday at $120.70 a barrel after midday
rising by about $0.60 a barrel a week
Brent crude traded rising by 0.01% during the day at $122.30
and rose by about $1.20 a barrel a week


At the end of the day, West Texas Intermediate crude was trading low at $118.5 (-2.03%)
while Brent crude was traded at $120.7(-1.30%)


Weekly oil production rates

The US oil production remained stagnant at 11.9 million barrels a day for the fourth consecutive week
for the week ending on June 3 by a decline of 1.2 million barrels a day from pre-epidemic times


The current conditions of oil markets

Since the average gasoline prices have exceeded $5 for each American gallon for the first time in history
the market is scheduled to witness more distress after 10 consecutive weeks of inventory decline


With the increased demand for gasoline in the United States to 9.2 million barrels a day in recent times
gasoline exports are still working strongly at 1 million barrels a day as Mexico
and other Latin American countries are still dependent on American supplies


With the inability of American refining companies to buy Russian VGO because they are still banned
many are forced to choose between gasoline and diesel
which means that both traps cannot be met simultaneously


Diesel and gasoline rose above $50 a barrel against West Texas Intermediate crude
although gasoline should exceed diesel because of the demand that is still high during Summer months


Last decisions of the driving companies for oil market

The Great French company Total (listed in the New York Stock Exchange under the symbol: NYSE:TTE)
made a final investment decision of $850 million in the third stage of the Clavs complex in deep water
which began production in 2014


After selling its oil business to Woodside, the giant mining company (NYSE:BHP)
returned its focus on the fertiliser industry while it is rushing to develop its first mine in central Canada


The British Greater Energy Company (LON:SHELL) has received 2 offers for its wild fields of oil and gas in Nigeria
at a value of about $5 billion, with the competition of local companies
Heirs Oil and Gas and ND Western for the Niger Delta portfolio





Oil sector’s updates

Biden attacks oil companies

US President Joe Biden mentioned the Great Oil Company Exxon Mobil
(listed on the New York Stock Exchange under the symbol:NYSE:XOM)
saying that the administration will make sure that everyone knows Exxon’s profits
and that the company has reaped many of profits
while claiming that it blocks investment in new drilling operations


Permian oil production is expected to reach its highest level at all

According to the Energy Information Department, crude oil production in the Bermean Basin
is expected to increase through Texas and New Mexico by 84.000 barrels a day in July
bringing the total production to 5.32 million barrels a day


OPEC reduces supply forecast further

In the most recent monthly oil report, OPEC reduced the growth of its fluid supplies from outside OPEC by 250.000 barrels
a day compared to May, which probably reflects the slowdown in the American turnout
while maintaining the annual demand number of 100.3 million barrels a day without prejudice despite the troubles of China


GB Morgan wins a judicial case against Nigeria

The US Investment Bank, GB Morgan, won a case in the London Supreme Court against Nigeria
The country was suing GB Morgan to obtain $1.7 billion
on the pretext that the bank was largely negligent in transferring money to a company
linked to Dan Etie the Oil Minister of the African country in 2011


Pretch Petroleum throws oil sands and they are doubled on the shores of Canada

The Greater British Oil Company (listed in the New York Stock Exchange under the symbol:NYSE:BP)
sold its 50% share in the Sunrise Oil Sands project in Alberta to Cenovus (NYSE:CVE)
and at the same time bought the 35% Canadian company share in the Bay du Nord undeveloped project.



Sorinam drilling records another disappointment

The American Oil Company, Apache, announced that its Rasper-1 Wildcat well which is in Block 53
in Suriname only collided with water, which led to another relapse after the non-commercial
nature of the exploration well Bonboni-1 in late last year


Long-term charters are widespread in liquefied natural gas shipping

The immediate market prices for LNG tankers have been increased to the highest levels in several years
as long-term rented ships have limited the supply of available tankers
while assessing an immediate trip in the Atlantic Basin of $100.000 a day


Iran and Venezuela sign a 20-year partnership agreement

In the wake of Nicholas Maduro’s visit to Tehran, Iran and Venezuela signed a 20-year cooperation agreement
calling for a closer alignment in the field of oil and gas
as Iranian companies are already repairing Ballito refinery which has a capacity
of 140.000 barrels a day and building new oil tankers


Energy demand in Texas records the highest levels during the heatwave

With a large part of Texas facing a strong anti-season heat
the demand for energy in the United States rose to 75 GB on Sunday and increased the next day
registering a new record for energy demand in Lunar Star


Libya is still unable to recover from disorders

With the deterioration of the internal conflict in Libya, about 1.1 million barrels a day
of Libyan production stopped after the protesters closed Sarir field which has a capacity of 200.000 barrels a day
and they also closed the ports of Sidr and Ras Lanuf
Only a few of previous production remains

 artical name Oil prices are not affected by the weak performance of OPEC