Inventories suddenly rise by 4 million barrels 2022-06-27T10:16:38 Inventories suddenly rise by 4 million barrels Inventories suddenly rise by 4 million barrels: On Tuesday 28th September 2021 the American Petroleum Institute (API) declared a sudden rise in crude oil stockpiles by 4.127 million barrels for the week to September 24, contradicting analysts’ expectations for a decline by 2.333 million barrels for the week. In the last week the API declared a decline in stockpiles by 6.108 million barrels to exceed the 2.400 million barrels expected by analysts. The data by the API shows that gasoline stockpiles also rose by 3.555 million barrels by the week ending September 24th compared with last week’s decline by 432.000 barrels. Distillate stockpiles rose as well this week by more than 2.483 million barrels compared with the last week drop by 2.720 million barrels. Cushing reserves continued to accumulate by adding 0.359 million barrels to its stockpiles this week, while it dropped in the last week by 1.748 million barrels. Oil prices for the week Oil prices fell on Tuesday before data publishing, while the weekly reports indicate US inventories declining and market’s aspiration to a precise market in the future; especially after Europe’s gas crisis which is expected to extend to other countries. West Texas Intermediate crude fell 0.70% on Tuesday afternoon before data publishing. At midday West Texas Intermediate was for 74.92$ a barrel, gaining 4.50$ throughout the week, but 0.53$ below Tuesday’s prices. Brent crude fell 1.01% to 78.73$ a barrel. US oil inventories cleaned out approximately 73 million barrels this year, according to the API data (below pre-pandemic levels) The latest data by Energy Information Administration EIA shows that US inventories are declining by 8% below the average of the five years for the same time of the year to 414 million barrels. Oil production weekly rates In the last two weeks US oil production lowered by more than million barrels, but crude oil production rose 10.6 million barrels per day for the week to September 17th, as finally more than 84% of oil producers resumed operations in the Gulf of Mexico after Ida’s arrival to shore by the end of August. Iran and Venezuela make oil swap deal Iran and Venezuela struck a deal to exchange heavy Venezuelan oil for Iranian condensate, Reuters reported. According to the resources, oil exchanges begin this week and last for six months, to be extended when needed. The Iranian crude oil imports will help Venezuela to revive its declining oil exports amid the American sanctions that prevented Venezuela from obtaining the light oil to be mixed with Venezuelan heavy oil to be exported. According to Reuters’s resources, the deal will provide Iran with heavy crude that could be sold in Asia, and Venezuelan light oil could go to Asian buyers too. Reuters mentioned that according to the United States Department of treasury the deal violates the American sanctions against Iran and Venezuela. The department of treasury in response to Reuters’s demand to comment replied that any dealings with the national Iranian oil company from non –American persons are subject to secondary sanctions, it also added that it keeps its right to sanction anyone insisting on working in the oil sector of the Venezuelan economy. Under such pressures, Venezuela managed to boost its exports and get vital revenues. Venezuela, as the world’s biggest oil reserve, exported more than 700.000 barrels per day in July (the highest exporting rate since February), according to a recent report by Reuters. Most of it has gone to China and Malaysia, yet Malaysia is usually a station on the Venezuelan oil road to China. The same report indicated that three of five oil blending installations in the Orinoco belt are working, and another oil development is getting ready to resume operations after being suspended for a year. Iran has revealed recently its plans to get 145 billion dollars from oil and gas investments domestically and internationally. Sudan makes a deal with protests to export oil Sudan’s government made a deal with protests to lift the Red sea surrounding, including South Sudan oil-exporting center. Reuters said that the domestic tribes are protesting bad economic conditions in the East of Sudan, blocking roads and ports including a port shipping crude oil from South Sudan to international markets. The deal between the government and rebels prevented an imminent crisis. The oil minister warned that the oil-exporting station reserving capacity is about to end in only ten days, and as a consequence oil production fields should stop production. The non-coastal South of Sudan is the home for most of the old United Sudan oil reserves. Despite most of these reserves not being utilized, the country is producing more than 100.000 barrels per day to reach its highest level of 185.000 barrels per day at the previous time this year, before its first licensing session ever. At the present time, South of Sudan owns five producing blocks, run by the Chinese national oil corporation, oil and gas Indian company, and Malaysian PETRONAS. The oil ministry mentioned at a previous time that an oil licensing session aiming at attracting a diverse group of foreign investors to an area is already includes giant Chinese and Malaysian oil companies. South Sudan separated from Sudan in 2011 to take with it 350.000 barrels of daily production, recently after the civil war in South Sudan broke out in 2013, hindered oil production. In 2018 the warring factions in South Sudan signed the Khartoum agreement declaration, and conflict parties declared a permanent ceasefire. Both the Sudan and South Sudan governments searched for the possibilities of reconstructing the oil sector in South Sudan, according to South Sudan oil minister about 90% of its oil wealth is still undiscovered.