U.S. inventories rise Oil prices fall due to Iran’s nuclear negotiations

2022-02-10T11:50:26
Oil Oil prices Oil production oil sector oil situation
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U.S. inventories rise Oil prices fall due to Iran’s nuclear negotiations

U.S. inventories rise Oil prices fall due to Iran’s nuclear negotiations: This week, the American Petroleum Institute (API) declared a decline of 2.025 million barrels in crude stockpiles,
while analysts expected a rise of 675.000 barrels

Evest follows market developments in the following report.

Topics:

U.S. Stockpiles dropped

Oil prices for the week

Oil production weekly rates

The oil situation for the week

Market’s drivers latest decisions

The oil sector latest updates

U.S. Stockpiles dropped

Nevertheless, U.S. Stockpiles dropped by 78 million barrels since the beginning of 2021 and by 21 million barrels since the beginning of 2022.

In the last week, the API proclaimed a drop of 1.645 million barrels in crude stockpiles; however analysts forecasted a rise of 1.833 million barrels.

This week, the API stated a decline of 1.138 million barrels in gasoline stockpiles for the week to Feb 4, compared with the 5.816 million barrels of the last week.

Distillate dropped by 2.203 million barrels throughout the week, following last week’s drop of 2.508 million barrels.

Cushing stockpiles as well lowered by 2.502 million barrels throughout the week to raise another wave of concerns.

Cushing stockpiles were a bit more than 30 million barrels on 28 Jan, 60 million barrels down at the beginning of 2021, and less than 37 million barrels down at the end of 2021.

Oil prices for the week

On Tuesday oil prices fell before data was published as concerns raised that Iran and the USA ,
are about to reach a nuclear deal to permit more oil barrels from a country that is already subjected to sanctions for now.

By midday, West Texas Intermediate crude (WTI) was 2.15% down to $89.36, but still about $1 a barrel up throughout the week.

Brent crude was 2.18% down to $90.67 throughout the day.

At the end of the day, West Texas Intermediate was for $89.53, and Brent was for $91.00.

 

Oil production weekly rates

U.S. oil production reversed its direction in the last few weeks.

For the week to Jan 28 _ the last week, the EIA reported data about the production _ U.S. crude production lowered by 100.000 barrels to 11.5 million barrels per day (bpd),

1.6 million barrels below pre-pandemic rates.

The oil situation for the week

Because of January, the coldest ever than average, the European gas stockpiles are now 38% down the total capacity and are less than any rate ever.

As GazProm has lessened supplies through the Yamal-Europe pipeline,
Brussels seeks to get guarantees from the USA and other producers to cover its needs in case the Ukrainian- Russian conflict gets worse to declare war.

Despite Azerbaijan has shown readiness to sell any extra supplies it got, the production is still slightly weak compared to the Russian imports.

Qatar at the same time said it hasn’t got much to do if there is any problem with Russia’s supplies.

Europe’s unused importing capacity would contain more amounts, however according to Qatar’s opinion insufficient liquefied natural gas supplies would be a genuine difficulty.

 

Market’s drivers latest decisions

As it achieved the highest annual  gains in eight years and spent $12.8 billion in 2021, British Petroleum (NYSE:BP),
the giant energy British corporation, assured its immersion with renewable resources ,
and now wants to invest not less than 40% of its capital spending in shifting technologies.

Toshiba (TYO:6502), a Japanese group, declared that it will separate into two companies, to separate systems by March 2024,
however the company which suffers from scandals didn’t get contributors’ support yet.

Reports have shown that Repsol, a giant Spanish oil company, seeks to sell some of its Canadian assets in the Duvernay basin, to benefit from price hikes,
as the 170.000 acres could get about $600 million.

The oil sector latest updates

U.S. restores sanctions waivers to Iran

As Vienna’s ninth round of talks to restore the Iranian nuclear agreement began today, U.S.

administration restored sanctions waivers to Iran to enable foreign corporations to work with Iranian civil facilities,
this may be a good sign that a diplomatic solution is coming soon.

Biden promises to end Nord Stream 2 in case of Russia invades Ukraine

As Russia-Ukraine clashes are maintaining the European tensions up. U.S. President,
Joe Biden promised to sustain Nord Stream2 of GazProm in case of Russia decides to invade Ukraine.

Mexico lowers the Aisian crude exports

Pemex, Mexico’s national oil company has greatly lowered its exports to India, the major buyer of Mexico’s Maya heavy product.

As it seeks to shift the domestic production to the new bought  Texas’s refinery “Deer park” of 320 bpd,
to force Indian refineries such as Indian Olympic Committee  (NYSE:IOC) to go to the middle east barrels.

Chevron increases its work in Venezuela

 Chevron (NYSE:CVX), the giant American oil company  has conducted talks with U.S.

authorities to get more control over operations of its joint Venezuelan project with PDVSA in exchange for oil supplies to offset the unpaid and delayed debts.

Investors forecast for Diesel Pool to operate

While most tradings showed Brent crude and West Texas Intermediate are going in two different directions,
pure centers of U.S. diesel and European dust gas have witnessed the biggest buying activity (+2 and +14 million barrels in a row),
as the lowered stockpiles has pushed the short term distillate 6:1.

Guyana wants better oil conditions

Giana’s government declared it will seek better terms for new contracts of sharing production,
as the current 2% royalty of the first ever discovery agreement with ExxonMobil (NYSE:XOM) is still one of the most adequate rates all over the world.

Iraq wants Qatar’s gas

In one of its attempts to cease dependence on the Iranian gas, Iraq’s minister of electricity Adel Kareem shows his interest in raising Qatar’s gas imports.

Despite Iraq lacking the ability of liquefying, noting that supplies would be directed through Kuwait, yet it is a sensitive  political suggestion.

Nigeria is in crucial need of gasoline

The Nigerian national petroleum company, NNPC, has contacted commercial companies to get emergency supplies of about 500.000 tons,
as many shipments have been rejected due to their poor type; to cause a ticklish political shortage of fuel in the country’s big cities.

Oil production in Argentina is hit by the general federation strike

Oil shale production of Vaca Mureta is weak due to the strike that began last Monday by Argentina’s biggest oil federation
to demand a salary raise amid an accelerated inflation in the Latin American’s state.

 

 

 

 

 

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