A sharp drop in the American crude oil


A sharp drop in the American crude oil

A sharp drop in the American crude oilOn Tuesday 3rd August 2021 the American petroleum institute declared
a drawback in crude oil by 879.000 barrels by the week ending on July 30.

Thus the American oil stocks fell to 55 million barrels in 2021, according to the (API).

Analysts expected a drawback in oil stocks by 2.900 million barrels this week.

While the API declared a drawback of 4.728 million barrels for the previous week.

Expectations were close to the expected amount for the week by 3.433 million barrels.

The API said that gasoline stocks drew back by 5.751 million barrels by the week ending on July 30 compared with the previous week’s drop by 6.226million barrels.

Distillate piles drew back by 717.000 barrels throughout the week besides a drop by 1.882 million barrels for the previous week.

Cushing stocks rose by 659.000 barrels this week compared with last week’s drop by 126.000 barrels.

Factors affected oil this week

West Texas intermediate crude stock fell on Tuesday due to fears from Delta variant,
especially in China where Wuhan’s 126.000 inhabitants will be examined to find out if there are any Covid- 19 infections amongst them.

China is the largest country in terms of virus spread since it began.

The virus spread over areas where no case was registered for months.

Crude oil prices for the week

West Texas intermediate crude stock fell by 0.15% by Tuesday afternoon before data publishing,
to reach 70.51$ in trades ( dropped by 1$ compared with the same time for the previous week)
while Brent crude fell to 70.51$ ( dropped by 2$ per barrel along the week)

Oil production weekly rates

Although American oil piles and prices are showing drawbacks, American oil production kept some balance to some extent.

The production rose from 11 million barrels per day at the beginning of the year to 11.2 million barrels per day this week.

Nevertheless, the 11.2 million barrels rate is less than the previous week by 22.000 barrels.

The biggest company in the Middle East studies selling more of assets

Some resources mentioned to Reuters that the biggest company in the Middle East controlled by the state including Saudi Aramco and ADNOC Emirates company desires to sell more of assets to investors in different fields of refineries and distillate in such a rise of prices.

The Saudi giant Aramco is studying the sale of its assets including a gas pipeline,
its shares in refineries and energy stations according to Reuters.

Bloomberg agency mentioned before that Aramco as the director of all oil and gas assets in Saudi Arabia by a franchise agreement with the Saudi Arabian state reduced its work in drilling for oil and production drew back. It may offer some shares in nonstrategic fields for sale to foreign investors.

Aramco made one deal by selling assets this year.

It sold its 49% share in the pipeline to a consortium controlled by Global Energy Partners which belongs to the American company EIG for 12.4 billion dollars.

IN the United Arab of Emirates ADONC is getting ready for the initial general offering of its share in drilling works,
it also aims at attracting foreign investors according to Reuters.

ADNOC has already got billions of dollars from energy assets including the sale of its 49% share in a gas pipeline in the last year for 10 billion dollars.

This deal was the beginning of the sale of assets by gulf oil producers who are looking forward to getting cash money and attracting foreign investors.

“Oman and Bahrain also are looking forward to getting money either by selling shares or public offering” Reuters mentioned.

In April 2021 Bloomberg mentioned that Oman was studying some choices to fill the gap in the budget
including the sale of the state oil company share OQ in the initial general offering.

And it tries to benefit from the international debt market to fund its expenses that would reach 7.9 billion dollars in the next five years.

Libya studies resuming its oil activities

“Libya’s Shell company studies resuming its work by contributing in developing oil fields and raising marketing activities and refining operations.”
Libya Herald on Tuesday, according to the statement by the NOC after a meeting with Shell’s representatives in Tripoli

Shell stopped its drilling operations in Libya in 2012, giving up excavations activities in two blocks because of disappointing results.

“NOC” the national oil corporation said that the negative evaluation by Shell doesn’t reflect the real.

Also, NOC mentioned that Shell representatives who visited Libya discussed the possibility of helping in improving oil fields in Libya,
the African member of OPEC. The two sides also discussed cooperation in improving refineries and renewable energy projects,
according to Mustafa Sanalla the chairman of NOC, by Libya Herald

“French Total energies as a big European company intend to increase its investments in Libya’s oil industry,
and it also discussed with the company raising Libya’s production of oil to its highest levels.” NOC at the end of last year.

Total energies own plenty of shares in Libya’s oil fields including the Sharara field, the biggest field in the country.

The field was closed with a number of other fields in the last year for more than eight months
after oil-exporting stations were surrounded by groups of Eastern government.

That made Libya reduces its products from more than 1.000.000 million barrels per day to less than 100.000 barrels per day.

“Libya would raise its production to1.6 million barrels per day by the first half of 2022 if the industry had the funding needed”.

Muhammad Oun oil minister in a statement to Italian agency Agenzia Nova

At the current time, the African member not included in OPEC’s reductions is producing about 1.2 million barrels per day.

According to OPEC’s latest monthly report, Libya’s crude oil average production reached 1.163 million barrels per day
in June compared with May’s production by 1.157 million barrels.


A sharp drop in the American crude oil