Oil prices rise back again, and American stocks lower by 4.728 million barrels

Oil prices rise back again, and American stocks lower by 4.728 million barrels

Oil prices rise back again, and American stocks lower by 4.728 million barrels

Oil prices rise back again, and American stocks lower by 4.728 million barrels: On Tuesday 27 July the American petroleum institute declared drawback in American crude stocks by 4.728 million barrels for the week ended on July 23.

According to the institute analyses, crude oil drew back near to 54 million barrels in 2021.

Analysts expected a drop in stocks by 3.433 million barrels through the week.

The institute declared a surprising rise in crude oil stocks reached 806.000 barrels for the last week, unlike the estimated drop by 4.333 million barrels.

Distillation outputs dropped by 1.882 million barrels through the week besides a drop by 1.255 million barrels for the previous week.

This week Cushing company stocks lowered by 126.000 barrels, unlike the previous week’s 3.567 million barrels drop.

Oil prices for this week

West Texas Intermediate crude oil trades prices lowered due to fears of the spread of the DELTA virus which would affect the speed of economic recovery and demand on oil.

West Texas Intermediate crude oil dropped by 0.56% on Tuesday before data were published.

At midday, West Texas Intermediate crude reached 71.51 dollars unlike the previous week’s drop in prices.

Standard Brent stock lowered by 0.19% to reach 74.36 dollars showing four dollars increase through the week. 

Oil production rates for the week

‘In the USA the last direction shows a drop in oil stocks, that is why American oil production is rising slowly and its average now reaches 11.4 million barrels for the week ended on July 16.” According to the latest energy administration data.

American oil production averaged 11 million barrels per day for the first three weeks of the year.

The agency recorded a drop in gasoline stocks by 6.226 million barrels for the week ended on July 23,
unlike the previous week’s drop which reached 3.307 million barrels.

Venezuela ignores the American punishments

Venezuela keeps ignoring the American punishments and progressing in its plan for production increasing by 1.5 million barrels per day by end of the year (three times the current production rates).

In 2019 the USA punished Venezuela for its dictatorship.

Consequently, Venezuela was not able to produce and export oil naturally.

Also, it found difficulty in getting oil and distillation outputs products.

New Venezuelan imports reflect its interest in activating the oil industry.

With the existence of nearly 300 billion barrels of oil stocks, Venezuela owns the biggest oil stocks in the world.

The production reached 2.4 million barrels per day before punishments.

Now Venezuela needs to get its production rates back to make some balance in the national economy and increase job opportunities.

With some help, it succeeded in coming over some restrictions by its partnership with China.

China concord petroleum co, limited shares in the Iranian oil industry.

Now it seems that the company is sharing in the Venezuelan oil industry.  

Although there are American threatens with punishing any organization helps in the petroleum industry in countries under restrictions such as Iran and Venezuela, Qatar petroleum company started working with Venezuelan oil companies besides china petroleum refineries in previous time in 2021.

IT brought more than 12 oil tankers last year to ship crude oil from Iran and Venezuela.

Already some punishment exceptions were set this year, in previous time this month the USA permitted importing
of liquefied gas from Venezuela, yet this was not permitted during the Trump period.

” The USA needs liquefied gas to be used in cooking instead of burning wood by Americans ”
Biden said in a statement.

in the next few months, it will be clear whether if the giant petroleum country will reach its goal of doubling its production three times or not,
as it is doing its best to activate its giant petroleum industry.

India shares in lowering oil prices.

India (the third world’s largest crude oil importer) is expected to join China in making use of oil stocks
to sell crude oil at low prices while there is a rise in world oil prices.

India criticized the OPEC production reducing agreement this year saying that India is not supporting the lower production
to keep prices high, also Indian officials criticized OPEC’S policy towards the market and high prices,
they also said that crude oil high prices would decrease demand on oil and make economic recovery generally slow.

“India studies selling half of its stocks to encourage private sector sharing in expanding its strategic storage capacity.”

Official resource mentioned to Reuters.

At the same time, some reports mentioned that China, the biggest oil importer in the world,
is trying to make use of its crude oil stocks.

“China launched more than 20 million crude oil barrels of its stocks to take control over the last rise in oil prices” according to last week’s magazines.

Also, the strategic oil reserves statement aims to take control over inflation.

Libya goes on its plan for increasing production to 2022

“Libya would raise its oil production to 1.6 million barrels per day by half of 2022 in case it gets the necessary finance”
Libyan oil minister Muhammad Oun in a statement.

At the current time, Libya (None listed on OPEC reducing production list) pumps nearly 1.2 million barrels in South Africa.

In June Libya’s average production reached 1.163 million barrels per day, unlike May’s production by 1.157 million barrels per day.

According to OPEC’s oil market latest monthly report secondary resources.

National oil corporation chairman Mustafa Sanalla said that Libya would be able to increase its production by the end of the year in case of keeping the national oil corporation out of touch again.

Libya surprised lots of market supervisors and maybe OPEC itself after being able to get back its production to 1.25 million barrels per day just in a few months while it was 100.000 barrels per day in September 2020.

The level of 1.25 million barrels was the same production Libya was pumping before the oil ports siege in January 2020, which lasted for eight months.

Even after lifting the siege in September and seizing fire in October Libya’s oil production has not been stable till now because of petroleum facilities guard strike protesting on not paying their salaries and lack of money for maintenance and restoration of oil infrastructure.

 

Oil prices rise back again, and American stocks lower by 4.728 million barrels

Leave a Comment

Your email address will not be published. Required fields are marked *