The Oil ends the year higher as crude oil inventories has dropped
The Oil ends the year higher as crude oil inventories has dropped: On Tuesday Dec 28, 2021 the American Petroleum Institute (API) declared a drop of 3.09 million barrels,
in crude oil stockpiles for this week. Yet U.S. Crude oil stockpiles lowered by 68 million barrels since the year’s beginning.
Evest follows market developments in the following report.
Topics:
The American Petroleum Institute
Oil prices for the week
Oil production weekly rates
The oil situation on the last days of 2021
Market’s drivers latest decisions
The oil sector latest updates
crude oil exporting forecasts
China begins to establish a giant coal station
The sale of the Japanese SPR has failed
The Indian refinery capacity was 100% in November
South Africa suspends shill’s seismic survey
China is expecting the crude demand to hit its highest in 2030
Beijing delays Teapot’s shares specification
The American Petroleum Institute
In the last week the API stated a drop of 3.670 million barrels in oil stockpiles, compared with analysts’ forecasts of a drop of 2.633 million barrels.
The API proclaimed a drop of 319.000 barrels in gasoline stockpiles for the week ending Dec 24, following the previous week’s rise of 3.701 million barrels.
Distillate stockpiles declined by 716.000 barrels throughout the week, while it declined by 849.000 barrels in the last week.
This week, Cushing stockpiles witnessed a rise of 1.594 mill barrels.
Oil prices for the week
On Tuesday, oil prices rose before data publishing, West Texas Intermediate crude (WTI) rose 0.49% to $75.94 a barrel, $6 up throughout the week.
Brent crude rose 0.51% to $79.00 a barrel, $6.50 up throughout the week
At the end of the day, West Texas Intermediate (WTI) was for $79.09 a barrel and Brent crude was for $79.12 a barrel.
Oil production weekly rates
U.S. Oil production rose slowly but consistently.
For the week ending Dec 17, the last week the EIA presented data about the production, U.S. crude oil production was 11.6 million barrels per day (bpd),
600.000 barrels per day above the year’s begging rates.
The oil situation on the last days of 2021
The oil markets are finishing up 2021 to some extent on high levels. As fears of Omicron’s impact on the global demand were excessive.
As the cut in supplies in many continents has helped in edging oil prices up.
And Libya is still blocking the market not less than 300.000 barrels per day (bpd) due to the political clashes and skirmishes.
Moving to Ecuador that hasn’t reformed the pipelines system, destroyed by floods, yet.
While Nigeria is struggling with another force majeure on Forcados Terminal.
All these are along with rumors of U.S. inventories’ decline throughout the week.
Brent crude rose to $79.5 a barrel, while West Texas Intermediate crude was for $79.5 during the last session.
Yet, it is expected for the international oil tankers’ market to rise rather than the volatile rise over the past two years,
as the global demand is stable, but shipper’s revenues will be far from perfection.
Despite the tankers shipping index doubling five times, this year, the shipments were mainly receding over the past 18 months,
as fuel prices have edged up and also there was an excess of tankers.
In 2022, analysts are forecasting for the oil tankers demand to rise 5% per year.
That will help in pushing instant revenues to a profitable area ($21.800 in the first quarter of 2022, compared with the $600 in the third quarter of 2021 for the giant oil tankers)
Though, the slow rate of ships’ demolition and as 70 to 80 tankers are predicted to enter the market, for sure the production capacity will increase.
Market’s drivers latest decisions
Exxon Mobil (NYSE:XOM),the giant American oil company, has got the longest period of a loan to draw 4.8 million barrels of the strategic oil,
as it won’t have to return them again before 2024.
Apache crop (NYSE:APA), an American oil company has signed an agreement of $3.5 billion to develop oil privileges in the western desert of Egypt,
which will give it the right to get back a delayed investment of about $900 million.
This week, the stocks of Evergrande (HKG:3333) rose, a Chinese giant constructing company,
the company is a military company handling the construction campaign in the country.
The developer said that it has made progress in resuming the construction work.
The oil sector latest updates
Iranian talks are concentrating on crude oil exporting guarantees
“Iran should be able to sell and get its oil revenues freely, as the eighth session of talks has moved to discuss non-nuclear issues and has made a “clear” progress.”
Hossein Amir-Abdollahian, Iran’s foreign affairs minister, said.
crude oil exporting forecasts
Pemex, Mexico’s government company has reduced its expectations for crude oil exports to only 435.000 bpd in 2022,
half of the 1.000.000 bpd of 2021 just at the same time the country is seeking to refine more of the domestic crude.
China begins to establish a giant coal station
As a challenge for calls to a low density carbon blend in the energy field,
China has begun operating the first unit of one gig watt capacity (there will be four in total) of Shanghai Miao in Ordos,
inner Mongolia, yet it is the biggest thermal energy project all over the country.
The sale of the Japanese SPR has failed
Japan will release about 630.000 barrels of its strategic crude petroleum reserves, maybe on March 20 or later.
Yet it’s a small part of the USA’s commitment to sell 18 million barrels due to a planned campaign to ease oil prices perfectly.
The Indian refinery capacity was 100% in November
To its highest levels in 10 months, the Indian crude oil consumption rose to 4.5 million bpd in the last month amid total use.
This indicates that the strong progress of demand will make India one of the other growth’s drivers.
South Africa suspends shill’s seismic survey
In South Africa after less than one month of a high court’s decision to allow Shell to resume its seismic survey in the eastern coast of South Africa, rich in gas.
This week, another high court judged by the contrary, this will pave the way for a long combat lawfully.
China is expecting the crude demand to hit its highest in 2030
China expects its crude demand to hit its highest by 2030 to 780 million barrels per year and expects the consumption of diesel fuel and gasoline to hit their highest by 2025,
which means that petrochemical demand will be the most important in the long term.
Beijing delays Teapot’s shares specification
China is not expected to export the first batch of products exporting shares of 2022 by the end of this year,
which increases independents’ option of selling amid a long governmental campaign.
As the possibility of carrying over 2021’s allowances to the next year isn’t an option.