Oil inventories decline by 815.000 barrels as prices are mostly fixed

2021-12-15T21:01:35
Market’s drivers oil inventories Oil prices opec
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Oil inventories decline by 815.000 barrels as prices are mostly fixed

Oil inventories decline by 815.000 barrels as prices are mostly fixed: This week, the American Petroleum Institute (API) declared a drop of 815.000 barrels in U.S. crude oil stockpiles,
while analysts predicted a drop of more than 2.60 million barrels.

Evest follows market developments in the following report.

The American Petroleum Institute

Oil prices for the week

OPEC’s vision of the current situation

Latest decisions made by Market’s drivers

The oil sector updates for the week

Exxon Mobil gets the first deal of the reserve loan from the U.S.

China eases restrictions on energy all over the country

Saudi Arabia and Kuwait agree on boosting production

ENI wants to simplify the giant African discovery

Ecuador announces force majeure for oil exports

 

The American Petroleum Institute

In the last week the API proclaimed a decline of 3.089 million barrels,
compared with analysts’ expectations of 2.093 million barrels.

The API stated a rise of 426.000 barrels in gasoline stockpiles by the week ending Dec 10,
after the previous week rise of 3.075 million barrels.

This week, distillate fell by 1.016 million barrels, following last week’s rise of 1.228 million barrels.
Cushing stockpiles rose by 2.275 million barrels, this week

Oil prices for the week

 On Tuesday, oil prices fell more than 1% before data publishing, as concerns of Omicron’s control over the industry were raised.

A new report by the international energy agency noted that it sees ,
that supplies are recovering while demand is declining due to the Omicron variant and in turn inventories will rise.

With the exception of five inventory processes in October, we haven’t witnessed this fixed rise before.

By midday, West Texas Intermediate crude (WTI) fell more than 1% to $70.74 a barrel,
it dropped more than $1.50 per barrel for the same time of the last week.

Brent crude was dealt for $73.51 a barrel, almost $2 below last week’s rates.

Oil production weekly rates

Despite there aren’t any on-going increases in U.S. crude oil stockpiles,
its production of oil is increasing consistently.

For the week ended Dec 3 _ the last week, data was released by the EIA _ U.S. ,
production of crude oil rose by 100.000 barrels per day (bpd) to 11.7 million bpd for the third week in a row.

Yet the production is still below its highest levels ever of 13.1 million barrels per day prior to the pandemic.

 

OPEC’s vision of the current situation

While the international energy agency thinks that Omicron will affect the global oil demand negatively,
OPEC has raised its predictions for the global demand in the first quarter of 2022, this week,
justifying that Omicron will not have great effects on demand and assuring that demand will rebound from its lowest rates during the pandemic.

In its monthly report, OPEC predicts for the average of the global oil demand ,
to reach 99.1 million bpd from January to March 2022,
up to more than 1.000.000 bpd over its expectations a month ago.

As the average of the annual consumption of the next year has risen,
OPEC is expecting for the average of the global crude oil consumption to reach 100.8 million bpd in 2022, approximately equalizing pre- pandemic rates of 2019.

December’s report shows that Saudi Arabia and Iraq are maintaining their top position ,
of OPEC’s production throughout the month, as Nigeria has failed to overpass the cuts of its supplies.

Latest decisions made by Market’s drivers

Norwegian energy group (NYSE:Equinor) intends to sell its 19% share in Martin Lang’s oil field by capacity of 115.000 bpd, news says it sells  8% in Ekofisk’s oil field too.

The giant oil and gas company, Royal Dutch Shell (NYSE:RDS.A) said that it will buy Savion,
the U.S. solar and energy storage company from Macquarie group for environmentally friendly investment,

in another deal to achieve its aspirations of 2050.

 Abu Dhabi national oil company (ADNOC), has declared a light oil  discovery of 1.000.000.000 barrels in the wild block 04, controlled by the Japanese INPEX (TYO:1605),
yet it is the second great discovery in 2021.

The oil sector updates for the week

Saudi Arabia warns of shortage in oil investment Abd Alaziz bin Salman,
Saudi’s oil minister mentioned that in case of the current low investment of “EB” process,
the global oil production will decline by 30 million bpd by 2030,
which would only fortify OPEC’s role as a main oil provider.

Energy Information Administration (EIA) lowers oil production expectations for 2022

 As shale oil workers continue to slow down pumping cash into new wells,
the EIA has lowered its expectations for the oil production,
in the USA in 2022 to the average of 11.85 million bpd in the next year,
with a rise of less than 700.000 barrels per day (bpd) compared with 2021’s average of 11.8 million bpd.

 

Exxon Mobil gets the first deal of the reserve loan from the U.S.

Exxon Mobil (NYSE:XOM), U.S. giant company will get 4.8 million barrels of the first US SPR  batch of 32 million barrels,
which was discussed for a long time,
from three facilities in Texas and Louisiana to be returned at a later time in 2022 or 2023.

China eases restrictions on energy all over the country

According to the released documents after the annual central economic work conference,
China will ease restrictions on energy consumption ,
and will forgive the new added renewable energies ,
and the first crude materials energy of any restrictions without declaring these restrictions.

Saudi Arabia and Kuwait agree on boosting production

Saudi Arabia and Kuwait has agreed on increasing the production of Al Khafji and Al Wafrah fields in the area known as the neutral area, controlled commonly by the two countries, as the current average of production is 200.000 bpd (almost 40% of its capacity)

China criticises “illegal” Teapot refineries

The Chinese officials have discovered a processual crude energy of millions of tonnes in Shandong province, claiming that not less than 60 million tonnes  of the annual refinery (1.2 million bpd, almost the half of the independent Chinese refineries’ capacity ) were built without any governmental approval.

ENI wants to simplify the giant African discovery

ENI (NYSE:E), the giant Italian company, seeks to simplify Baleine,
which is supposed to be the year’s biggest oil discovery,
containing offshore reserves of more than 2 billion barrels
in the Ivory Coast to set eyes on the first oil by 2023.

Ecuador announces force majeure for oil exports

Ecuador’s government imposes force majeure over its oil exports and production contracts,
after the progressive corrosion has threatened the country’s main two pipelines,
in Amazon’s Nabu province to force oil producers to decrease production to its half of only 250.000 bpd.

 

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