Oil price continues to drop despite the decrease of inventories 2021-12-01T18:19:18 Oil price continues to drop despite the decrease of inventories Oil price continues to drop despite the decrease of inventories :On Tuesday Nov 30, 2021 the American Petroleum Institute (API) reported a drop of 747.000 barrels in U.S. crude oil inventories for this week, while analysts expected to decrease by more than 1.667 million barrels this week. Yet U.S. crude oil stockpiles lowered by 57 million barrels since the year’s beginning. Evest follows developments in the following report. Topics: Decrease in inventories of oil and gasoline Oil prices for the week Oil production weekly rates Market’s drivers companies decisions for the week The latest updates of the oil market Updates of energy companies Decrease in inventories of oil and gasoline In the last week the API declared a rise of 2.307 million barrels in oil stockpiles, compared with last week’s drop of 950.000 barrels, expected by analysts. The API proclaimed a rise of 2.2 million barrels in gasoline stockpiles for the week ended Nov 26, while it rose by 600.000 barrels in the previous week. This week, distillates stockpiles increased by 800.000 barrels, following the last week drop of 1.5 million barrels. Cushing stockpiles rose by 1.000.000 barrels this week. Oil prices for the week On Tuesday, oil prices fell before data publishing amid new concerns of the new variant Omicron that would weaken the demand on oil. By midday, West Texas Intermediate (WTI) crude fell 5% to $66.28 a barrel, it lowered by more than $11 for the same time last week. Brent crude fell 4% to $70.57 a barrel, less by $12 throughout the week. Thus in November oil prices are generally decreasing by 20%. Oil production weekly rates U.S. oil production rose by 100.000 bpd to 11.5 million bpd, by the week ending Nov 19 _ the last week, data was released by the EIA. Lowered oil prices in November won’t encourage U.S. oil industry to invest more to get the production back to pre-pandemic levels of 13.1 million bpd. Factors that affected oil prices this week Last Friday’s “Black Friday“ prices fall shook the oil market, which led to the drop of the cumulative rising direction of the prices throughout the month, while prices recovered partly on Monday it has fallen again on Tuesday morning. The concerns of Omicron’s fast spread made the demand to decrease; everyone is concentrating now on OPEC’s next meeting , as the potential loss is 2.000.000 to 3.000.000 barrels per day, hoping that OPEC would be convinced , with stopping the monthly production additions of 400.000 barrels per day. Market’s drivers companies decisions for the week Exxon Mobil, U.S. giant oil corporation (NYSE:XOM) is conducting negotiations with Nigeria’s Seplat energy to sell its oil fields in Nigeria, at the same time it seeks to finish its assets in Europe and Africa to fund its expansion in shale oil in the USA. British Petroleum (NYSE: BP) revealed its plans to build a green hydrogen producing factory in the North East of England. HyGreen Teesside project of 60 megawatt is next to the blue hydrogen project to set by 30% of Britain’s hydrogen production by 2030 Eni (NYSE:E), the giant Italian corporation, said that it is ready to invest largely in nuclear fusion, especially in the commonwealth fusion system under the leadership of Massachusetts institute of technology, the project’s biggest contributor. The latest updates of the oil market Saudi Arabia has put away Omicron concerns: while other Middle East countries were hesitant about estimating OPEC’s predictions of the extra supplies. Prince Abdulaziz bin Salman, Sadui’s energy minister and Alexander Novak, Russia’s energy minister had the same opinionm of keeping the group along the pre-planned path. The White House seeks to raise U.S. Payments: In a recently published plan of gas and oil future developments on the federal lands, Biden’s administration calls to raise payments rates. As instalments are 12.5% on shore contracts and 12.5% to 18.75% on offshore contracts. Iran intends to raise daily production to 4.000.000 bpd: As Vienna’s negotiations about Iran’s nuclear program, are resumed this week after they have stopped for five months, the national Iranian oil company (NIOC) is getting ready to resume its daily production capacity of 4.000.000 bpd by March 2022. Saudi ARAMCO funds shale fuel oil: This week, Saudi Aramco began working in Java, the biggest boundless gas field in the country. Development costs are estimated to be $24 billion, aiming at producing 2 billion cubic feet per day of natural gas, and about 400 million cubic feet per day of bound ethane by 2030. Updates of energy companies Russia desires to expand the strategic partnership with China to build a green energy: After allocating gas and oil pipelines for supplying consumption centres in China, biggest Russian energy officials call to expand the strategic partnership to include the renewable energy sources, possibly by constructing wind energy projects Lundin energy reconsiders selling or joining: The Swedish Lundin energy (STO:LUNE) thinks strategic substitution would include, joining or direct selling as its multi operations expanded due to its share in the giant Johan Sverdrup field. Shell is plans to get back to Libya: Shell energy corporation(NYSE:RDS.A), based in the UK, is planning to get back to Libya after it left in 2012 ,. and is looking forward to oil and gas projects in Gadames and Sire basins rather than solar energy stations there. Indonesia presents 8 new gas and oil blocks in one round: Since the pandemic has struck, Indonesia has presented eight new gas , and oil blocks all over archipelago to offer licensing bids, noting that the total capacity of the blocks is 500 million barrels of oil and 22 trillion cubic feet of gas.