West Texas Intermediate crude falls at$109

West Texas Intermediate crude falls at$109

West Texas Intermediate crude falls at$109 And a great decline in gasoline inventories

The American Petroleum Institute (API) has announced an increase in oil inventories this week by 567, 000 barrels


The decline in inventories came at a time when the Ministry of Energy released 6 million barrels
of strategic petroleum reserves during the week ending on May 20


US crude inventories have lost about 75 million barrels since the beginning of 2021
and about 18 million barrels since the beginning of 2020, according to the data of the American Petroleum Institute


Last week, API announced a decline in crude oil inventories of 2.445 million barrels
after analysts expected an increase of 1.533 million barrels


This week, the American Petroleum Institute has announced a great decline in gasoline inventories
of 4.223 million barrels for the week ending on May 20
in addition to the decline in the previous week of 5.102 million barrels


The inventories of distillation products have also witnessed a decline
in the stock which amounted to 949, 000 barrels for the week
compared to the increase of last week which amounted to 1.075 million barrels


Cushing witnessed a decrease of 731, 000 barrels
Cushing’s inventories dropped to 25.839 million barrels last week, as of May 13
according to Energy Information Management data
decreasing by 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 witnessed a small amount of stability on Tuesday
as West Texas Intermediate crude settled at 110.30 on Monday before midday
a decrease of about $4.50 a barrel a week


The CEO of the International Energy Agency, Fateh Birol
warned that given the current situation of supply and demand
there is only one thing that can prevent prices from rising
which is that the Chinese demand will remain weak during the coming months


Brent crude traded rising by 20% a day at $113.70. It nearly fell by $1 a barrel a week
without a difference between the two criteria


At the end of the day, West Texas Intermediate crude was traded low at $109.80 (-41%)
while Brent crude rose at $113.50 (+0.05%)

artical name West Texas Intermediate crude falls at$109





Weekly oil production rates

The US oil production rose to 11.9 million barrels a day in the week ending on May 13
Crude oil production in the United States declined by 1.2 million barrels a day from pre-epidemic times


Factors affected oil market this week

According to Platt’s estimates, Chinese demand fell to 13.35 million barrels a day in April
a decrease of 11.5% on an annual basis, although the recovery of transportation demand
will push May’s figures to more than 14 million barrels a day


At the height of closure, the demand for gasoline and diesel in coastal areas decreased by 40%
with a total of 45 cities with a form of restrictions on movement


Market expects strong stimulus measures from Beijing that would increase the Chinese demand for oil by 4%on an annual basis
adding 600.000 barrels a day on an annual basis during the second half of 2022
although this may still be subject to a declining review if the policy of lack of Covid is valid


The last decisions of the driving companies for oil market

Jayeer Bolsonaro, President of Brazil, dismissed the CEO of Petro bras
(listed on the New York Stock Exchange:NYSE:PBR), after he warned of the country’s imminent diesel crisis


Before the annual general meeting of Exxon Mobil (listed on the New York Stock Exchange
under the symbol:NYSE:XOM) on Wednesday
the UK’s agent’s adviser PIRC urged contributors to isolating Darren Woods from the position of CEO of the company
saying that his continuation in work in this position represents a dangerous concentration of power


The Italian company Eni (listed on the New York Stock Exchange under the symbol:NYSE:E) and the French company Total Energies
(listed on the New York Stock Exchange under the symbol:NYSE:TTE)
began an exploration drilling for a natural gas well in Block 06 off the coast of Cyprus
after nearly four years of discovering Calypso well which is 8 trillion cubic feet

artical name West Texas Intermediate crude falls at$109





Oil sector’s updates

The European Union indicates a possible penetration of sanctions soon

The Prime Ministers of Germany and Netherlands announced that the sixth package of European Union
sanctions on Russia can be reached These sanctions must contain an oil embargo
within a few days, which indicates a possible settlement with Hungary


The White House may issue SPR diesel shares

 Biden’s Administration is studying an emergency version of diesel inventories in the domestic
heating oil reserves in the northeastof about 1 million barrels, to tame the high fuel prices
as the national average price of diesel reached $5.56 a gallon


China opens to Australia

Two years after China’s dissatisfaction with Australia, which led to Beijing’s ban on its coal exports
Chinese Prime Minister Lee indicated his willingness to work with the newly elected government of Labor leader Anthony Albaniz
the first high-level communication between the two countries since 2 years


Russia wants joint refineries with the BRICS countries

Russian Minister of Industry Dennis Mantorov boasted about the idea of establishing joint oil and gas refining facilities with other Brexes
(Brazil, India, China and South Africa) to alleviate their dependence on “unreliable partners


Norway can not only restart the LNG project in the Arctic

In the aftermath of a fire accident in September 2020, the Great Norwegian oil company (NYSE:EQNR) is
struggling to return the Hammerfest LNG factory, and postpone its restarting again to May 27 after the compressor failure





Iran revives the Oman gas project under the sea

The Iranian Ministry of Oil is seeking to revive a long-standing project of $60 billion to extend a surface pipeline that would transport Iranian gas to Amman
which was delayed because of pricing disputes and the return of the United States imposing sanctions on Tehran in 2018


Petro bras is studying an expansion on the source

It is reported that the Brazilian oil company Petro bras (listed on the New York Stock Exchange under the symbol:NYSE:PBR)
will invest $16 billion over the next 5 years to stop the natural declines in post-salt fields in the Campos Basin
despite the increasing pressure from President Bolsonaro to tame wiped prices of fuel


Argentina’s production rises to a maximum of 10 years

Argentina’s production of crude oil has risen to the highest level since 2011
with an average of 578.000 barrels a day in April with the increase in the Faka
Muirta production share of oil rock to more than 40% of the national total


Germany wants to keep the coal factories stopped on standby

For fear of potential energy crisis, the German government plans to maintain about 8.5 GB of coal-powered obstetric capacity
that is scheduled to stop in 2022-2023 in standby mode, while compensating operators from public funds to keep the raw materials ready


Trinidad wants to restore its refineries

The Trinidad and Tobago government chose an unnamed offer to restart the 165.000 barrels a day
which has been closed since November 2018, saying that it would seek to treat crude oil from the neighboring Guyana


The United Kingdom is considering imposing an unexpected tax 0n oil and gas

As energy prices in the United Kingdom are out of control and the maximum prices are scheduled to reach 2.800 pounds ($3.500) in October
the government in London is considering imposing an unexpected tax on oil and gas companies that fail to carry out “major investments” in renewable energy sources

artical name West Texas Intermediate crude falls at$109



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