Oil rebounds after positive results and rises in exports, Oil prices rose after being affected by the results that emerged last week, which indicate a record rise in US oil and fuel exports.

Topics
Will the show continue to decline?
Constant pressure
Saudi Arabia criticizes: the situation

Will the show continue to decline?

Petroleum exports reached 11.4 million barrels per day,
and this paves the way for clarity in light of the uncertainty of the situation with regard to demand,
which has deteriorated greatly due to the conditions of the global economy.

WTI contract prices rose about 3%, the highest in one week, and settled at $88 a barrel.

In light of the conditions in the global economy,

we find a significant deterioration in all expectations for fuel supply,
while gasoline stocks are declining, and markets have carried out withdrawals of crude oil inventories,
which came below expectations, amounted to 2.59 million barrels,
in light of a greater focus on the increase in the export figure.

An index to measure the dollar also saw it fall to the lowest levels in three weeks,
which increases the attractiveness of goods priced in US dollars.

Constant pressure

Oil markets have seen more pressure as traders are preoccupied with demand-driven expectations and also at the same time we notice the decline in supply, in addition to OPEC+ decisions aimed at reducing production and imposing more sanctions on Russian oil to enter into full implementation.

In the article, some observers point out their aspirations to China in order to seek new hope related to a potential economic recovery, which will increase the likelihood of offsetting the decline in demand as other concerns grow, but indicators still indicate signs of macroeconomic weakness and thus in the Chinese economy at risk of a slowdown, which is the largest importer of crude oil.

Saudi Arabia criticizes: the situation

We note the extent to which consumer prices rise as a result of the decline in the supply of crude oil and petroleum products, which prompted US President Joe Biden to pump millions of crude oil into the strategic reserve in order to try to calm prices.

Saudi Arabia’s energy minister commented on Tuesday on what is happening in cash to major oil importers in an attempt to calm prices by selling more stocks, thus warning that the current shortage of inventory could lead to suffering and intensifying the crisis in the coming months.

US Oil inventories fall by 4.045 million barrels

US Oil inventories fall by 4.045 million barrels: On Tuesday 31th august 2021 the American petroleum institute (API) declared a decline
by 4.045 million barrels in crude stockpiles by the week ending August 27th, yet crude stockpiles fell by more than 62 million barrels in 2021, according to data by the API.

Analysts expected a decline of 2.833 million barrels throughout the week.

Last week the API declared a lower by 1.622 million barrels, down analysts’ expectations by 2.367 million barrels.

The API declared that gasoline stocks rose by 2.711 million barrels by the week ending August 27th compared with last week’s drop by 985.000 barrels.

Distillate stockpiles fell by 1.961 million barrels throughout the week, compared with last week’s decline by 245.000 barrels.

This week Cushing stockpiles rose by 2.128 million barrels, after last week’s drop by 485.000 barrels.

Topics:

Oil prices for the week
Oil production weekly rates
OPEC’s decisions to increase crude oil production
Oil companies preparations before Ida hurricane

Oil prices for the week

On Tuesday Oil prices declined before OPEC’s meeting to decide on the short term shape of the oil market,
OPEC is discussing its plan to provide an extra 400.000 barrels daily to the market every month.

West Texas Intermediate crude declined 0.95% by Tuesday afternoon before data publishing.

West Texas intermediate reached 68.80$ in trades before midday (one-dollar rise in the week),
Brent crude fell 0.56% to 73$ a barrel on the day.

Oil production weekly rates

While American stockpiles continued to drop, the American oil crude production rose to 11.4 million barrels for the second week in a row.)

OPEC’s decisions to increase crude oil production

OPEC supplies the biggest amount of crude oil since April 2020, according to Reuters,
after OPEC allies agreed on decreasing OPEC’s reductions by 400.000 barrels per day every month from August.

OPEC of 13 members produce 26.93 million barrels per day in August, by 210.000 BPD rise compared with predicted production of July,
according to Reuters OPEC source’s surveys, petroleum companies sources and advisors,
and trucks tracking data Although OPEC increased its production of oil, profits were low than expected due to the cut in production in member countries.

This rise in production follows OPEC’s decision on July 18th to supply an extra 400.000 BPD monthly from August till OPEC lifted all production reductions of 5.8 million barrels per day. OPEC agreed to extend the deal from April 2020 to December 2022.

The ten members of OPEC sticking to the agreement share 253.000barrels daily of the monthly rise in OPEC’s production of 400.000 barrels per day,
according to OPEC’S numbers, by Reuters.

The biggest oil producers in the gulf raised their production in August, Saudi Arabia,
the biggest oil producer provided 180.000barrels of daily supplies, according to Reuter’s survey;
it was the biggest rise amongst OPEC members.

Iraq as the second oil exporter in OPEC raised its exports, while the United Arab of Emirates which opposed OPEC at the meeting raised its production by 40.000 BPD in accordance with its monthly share.

The cut in production in Nigeria and Libya restricted OPEC supplies to the market, according to the report.

Shell declared on August 15th the strongest exports of Forcados from Nigeria as it witnessed the biggest loser in an offer of 100.000 barrels per day.

Libya as not included in OPEC’S reductions witnessed a lower in production in August because of the leak in a pipeline at the beginning of the month.

Oil companies preparations before Ida hurricane

Oil production biggest companies in the Mexican gulf evacuated workers on sea platforms on Thursday,
some stopped production of oil and gas before the tropical storm Ida which is predicted to produce a hurricane in the gulf in the next few days.

Companies spokespersons mentioned to Reuters that Chevron, Shell, Bp, BHP, and Equinor evacuated workers of sea platforms.

Shell, Bp, and BHP suspended production on platforms.

Equinor r’s officials mentioned to Reuters that the company is preparing to evacuate workers on the Titan platform.

Chevron and BHP evacuated the non-essential staff. On Thursday chevron continued the production to its levels.

Refineries on the gulf coast are preparing themselves for bad weather circumstances, but operations were ordinary till Thursday.

The national hurricane centre mentioned in a warning late on Thursday that the centre of the tropical storm is expected to cross over the southeast and centre of the gulf by Fridays and Saturdays at midnight.

The hurricane is expected to approach the gulf coast of the USA by Sunday.

The maximum speed of wind is expected to be nearly 40 miles per hour and extensively blew.

Ida is expected to cross over the southern east of the Mexican gulf in a couple of days;
the centre added that Ida would be in its entire power when it approaches the northern gulf coast.

Ida is the ninth storm of the Atlantic Ocean hurricanes season this year.

In June oil producers companies evacuated their employees, the Mexican gulf producers evacuated employees before June’s storm,
Occidental Petroleum and Chevron were amongst the companies that conducted the evacuation operations of platforms.

Last year the season witnessed more than 30 storms, most of them hit the oil and gas shore sector,
forcing nearly 90% of production capacity to close beside the capacity of refining on the gulf coast.

US Oil inventories fall by 4.045 million barrels