A decrease in US crude oil


A decrease in US crude oil inventories despite the release of the strategic reserve


The American Petroleum Institute announced that crude oil has declined by 2,445 million barrels this week
compared to analysts’ expectations, an increase of 1.533 million barrels
 That was at a time when the Ministry of Energy released 5 million barrels
of strategic petroleum reserves during the week ending on May 13


US crude inventories have lost about 76 million barrels since the beginning of 2021 and about 18 million barrels
since the beginning of 2020, according to API data


Last week, the American Petroleum Institute announced an increase in crude oil inventories of 1.618 million barrels
after analysts expected a decline of 457 thousand barrels


This week, API announced that gasoline inventories of 5.102 million barrels decreased for the week ending on May 13
after the increase of last week that reached 823 thousand barrels


The inventories of distillation products witnessed an increase in stocks reaching 1.075 million barrels for this week
compared to the increase of last week which reached 662 thousand barrels


Cushing has witnessed a decline of 3.071 million barrels this week

Cushing inventories fell to 28.242 million barrels last week, as of May, according to Energy Information Management data-a decrease of 59.2 million barrels at the beginning of 2021 and 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

On Tuesday, oil prices rose as the market expected the demand for oil to return from China
with Shanghai returning to normal early on June 1


West Texas Intermediate crude was traded by 0.56% at $114.80 a barrel before midday
an increase of about $15 a barrel a week
 Brent crude was traded by 0.51% during the day at 114.80. It rose about $17 a barrel a week
completely, without a difference between them


At the end of the day, West Texas Intermediate crude was traded at $112 (-1.93%)
while Brent crude was traded at $111.30 (2.58%)

artical name A decrease in US crude oil




Weekly oil production rates

US crude oil decreased to 11.8 million barrels a day in the week ending on May 6
This was the first decrease since the end of January


The production of crude oil in the United States declined by 1.3 million barrels a day from pre-epidemic times


Factors that affected oil market this week


The operations of Chinese refineries have decreased to their lowest levels in the country’s history after the epidemic
as they decreased by 1.2 million barrels a day on a monthly basis to a monthly average of 12.6 million barrels a day


Since the closure of Shanghai was completed with restrictions in other major demand centers
it was the demand for aircraft and gasoline fuel that witnessed the greatest impact amid high inventories


From the first four months of the year until now, the Chinese demand for crude oil decreased by 4%
on an annual basis, to reach 13.6 million barrels a day, expecting that in May
it will turn to the highest marginal from April’s figures


The news of Shanghai, s reopening as for June 1 onwards, revived the hopes for the quick recovery
of the Chinese demand, although the slowdown of GDP in China to( – 4.5 %) this year may put an end to that


Last decisions of the driving companies for oil market


Norway’s Equinor (NYSE:EQNR) and Exxon Mobil (NYSE:XOM)
launched an expansion campaign in the Bacalhau giant field, looking to get a second FPSO
which may double the capacity of the field of 220 thousand barrels a day


TotalEnergies, the great French Energy Company (listed on the New York Stock Exchange:NYSE:TTE)
joined the world’s largest marine wind developer (CPH:Orasted)
to provide joint bids for the upcoming Dutch marine wind tenders


Brazilian President Jayer Bolsonaro indicated that he may mess with the profit distribution
policy for the National Oil Company Petrobras (listed on the New York Stock Exchange under the symbol:NYSE:PBR)
just days after the company’s decision to raise transport fuel prices

artical name A decrease in US crude oil





Oil sector’s updates

Saudi Arabia is looking to the peak of its capacity for 2027
According to the Minister of Energy, Abdulaziz bin Salman
the kingdom of Saudi Arabia is on its way to increase its productive capacity
from crude oil to more than 13 million barrels a day by early 2027
with increases that come from the new Aramco and the neutral region projects
which is developed by Riyadh along with Kuwait


The European Union clarifies the conditions for the purchase of Russian gas

The European Commission stated that European energy companies can pay the price of Russian gas
without violating the cluster sanctions, provided that they are paid in the contractual currency
and announce the completion of the deal when paying that currency


Libya is witnessing riots in Tripoli amid an oil siege

Clashes erupted in the Libyan capital after the interim Prime Minister Fathi Pashaga
who was approved by Parliament, tried to enter Tripoli, but he withdrew after several hours
of violent fighting, making the possibility of reaching a less realistic diplomatic settlement


US strategic oil reserves have decreased to their lowest level since 1987

By registering a decrease of 5 million barrels on a weekly basis in the week ending on May 13
as it decreased to a total of 538 million barrels
the amount of raw stored in the American strategic oil reserves
has decreased to the lowest levels since 35 years


Russia’s oil sanctions depend on Hungary’s approva

It seems that the only country of the European Union which is still objecting to the ban on Russian oil is Hungary
The country stated that it will need up to 750 million euros ($820)
to renew its refineries and infrastructure to be able to gradually get rid of crude oil imports from Russia


The UK Energy Regulatory Authority wants to make price reviews

After seeing the country’s energy ceiling increased by 54%, to 1.971 pounds ($2.450) annually
 the UK Energy Regulatory Authority announced that it prefers quarterly reviews
on the limits of electricity prices instead of current semi-annual reviews


Iran is rebuilding the Venezuela Refinery

The state-controlled Iranian engineering company has signed a $110 million deal
with Venezuela in order to repair the smallest refinery in the country, El Palito
whose production capacity is 146.000 barrels a day in the northern state of Carabobo
and it also agreed to supply the refinery once it is restarted


Total Energies seeks to get out of Nigeria

It joined the ranks of the Great British Petroleum Company (LON:SHELL)

The French Energy Company Total Energies (listed on the New York Stock Exchange under the symbol:NYSE:TTE)
will consider selling its wild oil licences in Nigeria because societal turmoil
i.e. theft of crude oil and sabotage of Pipelines make the operations uninterrupted


Asian LNG is heading towards a decrease despite the re-storage in the European Union

Asian LNG prices have been recently decreased to $23 per a million of British
thermal units despite the strong European purchase of inventory renewal
this is due to primarily to the decrease in Chinese demand to new low levels amid the continued closure of the country


Chinese coal production rises more

Coal production in China jumped by 11%, on an annual basis in April
without being disturbed by the country’s multiple movement restrictions
to reach the second highest monthly level of 362.8 million tons that were extracted amid
a large-scale government campaign to produce more


Peru suits the Great Spanish Oil Company for $4.5 billion

The Peruvian government is expected to file $4.5 billion civil lawsuit against the Spanish Oil Company (BME:Rep)
claiming that the oil dropout that occurred last January next to the Pampilla refinery
that is run by Repsol in the country, affected more than 700.000 people

artical name A decrease in US crude oil