West Texas Intermediate crude recovers as oil and gasoline stockpiles fell

West Texas Intermediate crude recovers as oil and gasoline stockpiles fell :On Tuesday Nov 17, 2021, the American Petroleum Institute (API) reported a slight rise in U.S. crude oil stockpiles
which was enough to prevent the market from being frightened due to stockpiles drop.

Evest follows market developments in the following report.

Topics:

rise in crude oil stockpile

Oil prices for the week

Oil production weekly rates

The world is still in need to oil and gas

Oil and gas role in energy blend for 2050

Bernard Looney British petroleum CEO

Putting oil away begins with the demand not the offer

rise in crude oil stockpile

The API declared a rise in crude oil stockpiles of 655.000 barrels,
while analysts expected a rise of 1.550 million barrels for the week.

U.S. Oil stockpiles are declining by 60 million barrels than they were at the year’s beginning.

In the last week, the API proclaimed a drop in oil stockpiles of 2.485 million barrels,
compared with the 1.90 million barrels expected by analysts.

The API also stated a decline in gasoline stockpiles of 2.792 million barrels by the week ending Nov12,
besides last week’s drop of 552.000 barrels,
as the rising gasoline prices in the USA continued to gain interest.

This week, distillates stockpiles rose by 107.000 barrels, besides last week’s rise of 573.000 barrels.

Cushing, the biggest center of oil in the USA continued to decline this week.

The API declared that Cushing’s consumption rate would be 0.491 million barrels.

Oil prices for the week

On Tuesday oil prices rose slightly before data was published,
as West Texas Intermediate crude was at $81 a barrel and Brent crude at $82.58 a barrel.

West Texas Intermediate crude fell $3 throughout the week, while Brent crude fell $2 per barrel throughout the week.

At the end of the day West Texas Intermediate crude was declining to be at $80.75 a barrel

Oil production weekly rates

U.S. Oil production for the week ending on 5 Nov (the last week the EIA reported data about the production) remained at 11.5 million bpd,
still less by 1.6 million bpd than its highest level ever of 13.1 million bpd, prior to the pandemic.

The world is still in need to oil and gas

While many governments of developed countries and investors are calling for fast shifting to energy rather than using fossil fuel,
the world’s need for energy shows that oil and gas are going nowhere and they will be a part of the global energy blend in the coming decades.

The world will still need oil even if it manages to put itself on the right path of achieving zero emissions by 2050.

The renewable energy can replace more and more of fossil fuel in generating power and transporting,
but these aren’t the only industries that use oil and gas.

Since remedies, cosmetics, technology and clothes all use fossil fuel; the world will still need oil.

The only future in which the world will be in no need to oil is when all consumers in the entire globe
suddenly abandon the modern life comfortable means, they got used to.

As there is demand for oil and products derived from crude oil, there always will be who imports it.

Oil and gas role in energy blend for 2050

In the last weeks, Big Oil was sending a clear message to the market,
that during the pandemic the demand on oil growth never died last year.

There will be need for oil for decades, even if this need isn’t high.

The implied message is that, Big Oil which aims to be Big Energy is working on affording “best of the best” of oil and gas by the least possible emissions.

The third message, especially from the biggest European companies is that the old works of gas and oil
will be the financial drive which will pay the costs of their developed works in the renewable energy field.

Bernard Looney British petroleum CEO

“Oil and gas will play a role in the energy system in the coming decades.” Bernard Looney, British petroleum’s CEO, Said.

Looney said on Monday to CNBC on the margin of the ADIPEC energy conference in Abu Dhabi
“It isn’t common to say that oil and gas will stay in the energy system in the coming decades, but this is real.”

Despite the truth that many of the biggest European companies will provide less amounts of oil in the future,
the old oil and gas works will fund its low carbon sectors, according to BP and Shell’s CEOS in the last gains calls.

Ben Van Burden, Shell’s CEO on commenting on contributor’s activity, said that the world is still in need of oil and gas,
and it is legal and essential to afford oil and gas products.

It is better to be afforded by the companies that are already familiarized with doing this.

You already have the strategy to use some money not only in funding contributors’ distributions,
but also in shifting the company to a better and cleaner one.

“We need a cash flow for investment in shifting, and our current works are generating massive cash flows.

Looney of British Petroleum, whose slogan is “Performance during shifting.”

Looney noted that this isn’t a story of shifting from oil to renewable energy.

It is concentrating on oil, and that is an investment in renewable energy sources,
but not only renewable energy for renewable energy sources and investment in the chain of low carbon energy.

Putting oil away begins with the demand not the offer

Despite the rapid investment in low carbon energy, this doesn’t mean that the oil industry should abandon oil projects and stop providing oil.

The world now needs the same amount of oil it needed directly prior to the pandemic.

As demand is declining and disproving some theories from the last year, that the global consumption of oil will never be back to pre-Coronavirus levels.

The demand not only will be back to those levels, but also will exceed it to record new standard high levels.

Late this month BB said that the global demand on oil already exceeded 100 million bpd, which was seen for the last time prior to the pandemic.

Russell Hardy, the CEO of the biggest private oil trader in the world Vitol,
said last week in Reuters’s conference for online goods trading, reported by Bloomberg “Now we are at 2019 levels or near to them.”

Despite the slight decline of demand this year, OPEC estimated that oil demand in 2022 will be in the average of 100.6 million bpd
or near 500.000 bpd, above 2019 levels.

To have a growing or stable demand on oil, as was the situation after Coronavirus there should be who provides that oil.

If it isn’t the biggest oil companies, which are under growing pressures from active contributors and investors, it will be Saudi Arabia or Russia.

The global economy can’t endure the cost of reducing oil industry to provide oil supplies while demand continues to rise

West Texas Intermediate crude recovers as oil and gasoline stockpiles fell

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