A new rise in oil prices .. and a decline in stocks by more than 2 million barrels

A new rise in oil prices .. and a decline in stocks by more than 2 million barrels: Yesterday, Tuesday, June 8, 2021, the American Petroleum Institute announced that US crude oil inventories decreased by 2.108 million barrels for the week ending on June 4.

Analysts had expected a decline of 2.036 million barrels during the week.

As for the previous week, the Institute announced a decline in oil inventories,
which amounted to 5.36 million barrels, after analysts had expected a decline of 2.114 million barrels.

Since the beginning of 2021, crude oil stocks have fallen by more than 14 million barrels,
but they are still rising by 43 million barrels since January 2020, according to the institute’s data.

The API report

The API reported an increase in gasoline stocks of 2.405 million barrels for the week ending June 4 in addition to an increase of 2.51 million barrels in the previous week. Analysts had expected a much smaller increase of 698,000 barrels for the week.

Distillate stocks witnessed an increase in stocks this week, which amounted to 3.752 million barrels during the week,
in addition to the increase of 1.585 million barrels last week.

Cushing stocks are down 420,000 barrels this week.

Oil prices this week

Oil prices rose again on Tuesday after the US Secretary of State said that even if the United States were to reach a nuclear deal with Iran, hundreds of U.S. sanctions on Tehran would remain in place, a clear indication that no more barrels of Iranian oil will be in the oil market soon.

In the middle of the day and before the data was released,
the price of West Texas Intermediate crude was up $0.97 (+1.40%) and was trading at $70.20, up nearly $2 a barrel this week.

The benchmark Brent crude rose $0.86 a barrel (+1.20%) and was trading at $72.35 a barrel.

After the data was published, WTI was trading at $70.23 while Brent crude was trading at $72.36 a barrel.

Weekly energy production rates

After crude inventories fell again this week, US oil production fell to an average of 10.8 million barrels per day for the week ending May 28, according to the latest data from the Energy Information Administration.

This is a decrease of 200,000 barrels per day from the previous week.

Saudi Arabia is no longer an oil-producing country only!

Saudi Energy Minister Prince Abdulaziz bin Salman announced that Saudi Arabia is no longer an oil-producing country,
but rather an energy-producing country.

Saudi Arabia has high green ambitions that include gas production,
renewable energy sources, and hydrogen.

Saudi Arabia is sure to benefit from this shift.

At a time when some oil companies are busy doing bids in the meeting rooms and court, the national oil companies, especially those affiliated with the OPEC alliance, are keen to benefit from the confirmed increase in oil prices.

official selling price for July

Saudi Arabia has already raised the official selling price for July to Asia.

But this does not prevent Saudi Arabia from pursuing its green ambitions and achieving the “Saudi Green Initiative”, financing it through oil sales.

Saudi Arabia is working to achieve its plan to generate 50% of its energy from renewable energy sources by 2030, partly to reduce its dependence on oil.

Renewable energy

Renewable energy sources accounted for only 0.02% of the total energy share in Saudi Arabia, in 2017.

But this does not mean that Saudi Arabia is planning to reduce its oil production or it plans to stop financing all new oil and gas projects, as the latest International Energy Agency report indicated the world should do to get to zero by 2050.

Saudi Arabia has always maintained that oil will remain the most important source of energy for decades.

The Saudi Energy Minister

The Saudi Energy Minister said that the net-zero path stipulated in the latest report of the International Energy Agency is unrealistic.

And several oil-producing and consuming countries rejected this report.

Saudi Arabia’s oil revenues, which would have funded any green aspirations for the kingdom, over the past year and a half, and the state-run oil major Aramco has been forced to keep bond sales just to pay its huge profits to the state.

This is what makes Saudi Arabia worth noting in the coming period.

China’s oil imports fall

Crude oil imports into China are likely to decline by 3% as a result of government efforts to cut fuel production due to excess inventory.

As part of this effort, Beijing has asked China’s largest state-owned oil company,
PetroChina, to stop swapping crude oil import quotas with independent refineries. ,

According to Reuters

This push to reduce fuel production with refining margins declining to nearly zero not only in China but in the rest of the Asian continent. Margins dropped from $1.65 a barrel in April to just $0.03 a barrel in mid-May.

Reports indicate that refining margins are beginning to improve and are
expected to continue into the second half of the year when vaccines
are expected to improve the outlook for fuel demand.

At the same time, Beijing confirmed its control over crude oil import quotas,
as last month it sent an “urgent notice” to state oil majors, China National Offshore Oil Corporation,
Sinochem Group, ChemChina, and China Northern Industries Group to provide information to the
National Development and Reform Commission about how it used the crude oil it was importing.

“The government is taking carbon emissions a lot more seriously this year,
and sees large crude oil imports and large refined fuel exports as something unsustainable,” said one official.

The age of oil is still continuing

The increasing demand in Asia indicates that the age of oil is still continuing and has not ended yet, although consumption in some Western countries has tended to decline over the past ten years some officials in the field of oil believe that the East always plays the decisive role, not the West.

And the energy market is developing more dynamically in the East.

In addition to the consumption of the continent of Africa.

Also, the continued growth of oil demand in Asia will control the global trend in oil demand due to the economic boom and rising population.

Russian oil

According to a member of the board of directors of the largest Russian oil companies,
any type of energy has its effects on the environment.

A particular industry should not be oppressed, because this will lead to a
decrease in investment and a freeze in production.

And the current global push toward green energy and de-fossil fuels could lead to a new super oil phase.

Rosneft CEO Igor Sechin also warned that the lack of investment in oil and gas projects puts the stability of global oil supplies at risk; the world is in danger of facing severe oil and gas deficits.

A new rise in oil prices .. and a decline in stocks by more than 2 million barrels

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