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A sharp drop in oil prices this week

A sharp drop in oil prices this week

A sharp drop in oil prices this week

A sharp drop in oil prices this week: Energy stocks dropped on Tuesday 6th of July 2021,
after a fall in oil prices after many years of reaching high prices.  

Some worry in the market that the OPEC crisis would lead to union dissociation.

OPEC canceled Monday’s minister’s meeting, trying for the third time to reach an agreement to manage oil supplies during the next months.

Changes in oil prices this week

American oil prices reached their highest level in six years, while Brent reached its high level in October 2018.

But on Tuesday B & S’s pointer lowered to 500 after reaching its highest levels every Friday,
also Nasdaq recorded a high price yesterday because of technology stocks.

Energy stocks dropped after recording progress with oil prices in previous times during this week in European stock markets.

In the afternoon also shell and bb company stock lowered by 2% for each in London.

In the USA shell stocks lowered by 0.5% in New York,
but BB company stocks lowered by 2.5% after one hour of stocks trading beginning.

Exxon Mobil stocks were lowered by 4%.

Also, Chevron stocks lowered by  15%, while occidental petroleum stocks lowered by 4%,
and marathon Opel company lowered by 3.1% at 10:30 pm according to the east of united states times.

European pointers dropped on Tuesday afternoon.

Although the FTSE pointer was high in previous time today in London overtaking other European markets during the afternoon.

Oil stocks supported FTSE pointers recording high levels at the beginning of stock marketing.

Investors keep watching stock markets and how the late progress in oil price may lead to inflation,
which would lead by turn to change financing policy by the federal bank stock and other central banks.

South of Sudan getting ready for oil auction

South Sudan is in short of time preparing for the first oil auction.

Administrators declared that the four areas in the country reached their high level of production and began to lower.

 Daniel Chong deputy minister of the oil ministry told Bloomberg that production in groups 3&7 lowered from 120,000 barrels per day to 103,000 barrels per day,
but areas 1,2 and 4 lowered from 53,000 barrels per day to 48,000 barrels per day

In general, pure oil production lowered from 185,000 barrels per day to 165,00 barrels per day.

Now South  Sudan has five producing areas directed by Indian oil and natural gas company
which belongs to the national petroleum Chinese company and Malaysian PETRONAS company.

During last week production restarted in area A5 after stopping for 7 years aiming to produce 8000 barrels per day.

The first licensing auction began on July 22ed in South Sudan, and it will present five areas for licensing.

But PETRONAS says it may not join this auction.

The foreign investment forms a remarkable point for the south of Sudan.

South Sudan’s far-off coast areas are of high importance because almost 90% of it is not discovered yet.

The civil war which lasted for five years had a bad impact on discoveries and delayed opportunities for new discoveries,
and also delayed planning for reaching the same production levels before the war that would reach 400,000 barrels per day.

In 2019 south of Sudan and some other countries that are not members in OPEC,
those who were listed on OPEC list of reducing production declared their first discovery of oil as an independent country
with a capacity of 5.3 million barrels that can be increased but the pandemic stopped progress in production.

Chewing said that covid19 represented challenges besides other dangers, unit production cost is extremely high.

And if we managed not to take control over production costs, profit would be low and we need to fix that thing.

We need to guarantee the profit of oil against oil production costs.

Oman Oil Company is negotiating for collecting 1.5 billion dollar

Administrators told Reuters that (EDO) energy development Oman company is one of government oil companies
that was recently established is negotiating for 1.5 billion dollar debt with banks

One of these resources told Reuters that it’s not predicted for the funding the organization aims to help in financing capital expenditures.

JP Morgan is working with Oman Energy Company on a financing plan.

Also, some banks from the UAE showed interest in joining the financing.

In the last few months, Oman established (EDO) company to keep its share in the biggest area of producing oil in the country.

Block 6 was directed previously by the oil developing authority of Oman supported by the state.

Wood Mackenzie mentioned that block 6 is one of the most important oil and gas operations in Oman,
it contains more than 75% of pure oil stock remaining in the country.

There was a bad impact on Oman as an oil-producing country not a member of OPEC but part of the union when oil prices dropped last year and demand lowered.

Oman is trying to collect extra financing and aims to reduce government expenditures.

The international monetary fund said in previous time this year that Oman suffered from 2020 problems and there was a great loss in Oman economy in 2020.

It is predicted that Oman’s financial deficit would rise to 18% of gross domestic product (GDP)
before it would be narrowed to 7% of (GDP) in 2024

According to Fitch agency credit ratings for December, it warned that Oman is facing big risks in its financial plan in funding and applying.

In April 2021 Bloomberg mentioned that the Oman government is seeking to fill the gap in the budget including the sale of its share in (OQ) company through an Initial public offering.

Some reports mentioned that (OQ) company is looking forward to selling off its corporate assets and make benefits of the international debt market to fund its expenditures that would reach 7.5 billion dollars in the next five years 

 

A sharp drop in oil prices this week

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