A new jump in crude oil prices as US inventories fall significantly


A new jump in crude oil prices as US inventories fall significantly

A new jump in crude oil prices as US inventories fall significantly: The American Petroleum Institute (API) announced yesterday,
Tuesday, May
4, 2021, a significant decline in crude oil inventories by 7.688 million barrels for the week ending April 30th.

Analysts had expected a decline of 2.346 million barrels this week.

The American Petroleum Institute announced a significant increase in oil inventories by 4.319 million barrels in the previous week
after analysts had expected an increase of 659 thousand barrels.

The American Petroleum Institute announced that gasoline inventories fell by 5.308 million barrels for the week ending April 30,
after the previous week’s decline of 1.288 million barrels.

Analysts had expected a withdrawal of 652 thousand barrels for the week.

Distillate stocks also saw a decline in inventories this week by 3.453 million barrels for the week,
after last week’s drop of 2,417 barrels.

Oil prices this week

Oil prices rose the day before the American Petroleum Institute data release,
as the European Union and most of the American states plan to ease the forced closures,
and this step will boost oil demand, even as the number of Coronavirus cases continues to rise in India.

At midday on Tuesday, WTI was trading at $ 65.68, which is 1.85% higher for the day
and $ 3 more per barrel over the same time last week.

Brent crude was trading, up at $ 68.84 a barrel, or which is 1.89% for the day.

After the data was released, the WTI was trading at $ 65.68,
and Brent crude was trading at $ 68.84 a barrel

Weekly oil production rates

According to the latest EIA data, with crude oil inventories dropping significantly this week,
US oil production also fell slightly, to an average of 10.9 million barrels per day for the week ending April 23.


Iran plans to increase its oil exports after the lifting of US sanctions

An Iranian official confirmed that Iran is able to increase its daily exports of crude oil to 2.5 million barrels after the lifting of US sanctions on its oil sectors,
and there is news promising to return the United States and Iran to a nuclear deal.

Iranian Vice President Eshaq Jahangiri said, “Oil sales have decreased a lot, but now the situation is better,
and we are in control. We will be able to increase oil exports to 2.5 million barrels per day after the sanctions are lifted.”

US sanctions imposed by the Trump administration continue to prevent Iran from exporting all of its oil, as many buyers around the world are unwilling to take risks by doing business with Iran.

Despite this, Iran was able to export a portion of its crude oil, which is estimated at 500 thousand barrels per day.

Currently, the United States is holding indirect talks about the Iran nuclear deal with diplomats in Vienna.

Joe Biden

And US President Joe Biden indicated his willingness to return to the nuclear deal,
but only if Iran returned to full compliance with its nuclear activities.

Iraq may buy Exxon’s stake in an Iraqi oil field 

Iraq could buy ExxonMobil’s 32.7% stake in one of the largest oil fields in OPEC’s second-largest producer, West Qurna 1,
Bloomberg quoted Iraq’s oil minister Ihsan Abdul Jabbar Ismael as saying. 

Reports about the possibility of a major American company liquidating its stake in the large Iraqi oil field are not new.

Last year, Bloomberg reported, the China National Petroleum Corporation (CNPC)
and the China National Offshore Oil Corporation (CNOOC) was interested in purchasing an entire stake in ExxonMobil’s operation in West Qurna,
and the sale of the stake could be worth at least $ 500 million.

As reported at the time.

According to Bloomberg

Exxon has been considering selling its West Qurna 1 stake as it looks to reduce its debt,
which grew in 2020 with the collapse in oil prices, at the same time the
Supermajor is looking to keep its dividends as they are,
according to Bloomberg published last month.

The Iraqi Oil Minister announced that the Iraqi government may now end up buying Exxon’s stake.

The minister added that a possible acquisition would be made through the state-owned Iraqi Basra Oil Company.

In 2010, ExxonMobil signed an agreement with the South Oil Company of the Iraqi Oil Ministry
to rehabilitate and redevelop the West Qurna 1 field in southern Iraq.

Exxon is considered to be the main contractor, and according to a 2010 agreement,
a subsidiary of Royal Dutch Shell has a stake in the West Qurna 1 field.

In 2018

In 2018, Shell sold its stake in West Qurna 1 to the Japanese Itochu Corporation.

Currently, the Japanese company owns 19.6% in the oil field.

Besides the Japanese Itochu and Exxon, the other shareholders in West Qurna 1 are PetroChina with 32.7%,
Indonesia’s Pertamina with 10%, and Oil Exploration Company with 5%.


In his speech to the press today, the Iraqi Oil Minister said that Iraq sees oil prices remain at approximately $ 65 a barrel in the near term.