US Oil inventories fall by 1.6 million barrels


US Oil inventories fall by 1.6 million barrels

US Oil inventories fall by 1.6 million barrelsOn Tuesday 24th August 2021 the American petroleum institute (API) declared
a decline by 1.622 million barrels in crude stockpiles by the week ending August 20
yet crude stockpiles fell by more than 58 million barrels in 2021, according to data by the API.

This week analysts expected a decline of 2.367 million barrels.

Last week the API declared a lower by 1.13 million barrels which are less than 1.259 million barrels were expected by analysts

The API declared that gasoline stocks lowered by 985.000 barrels by the week ending August 20th compared with last week’s drop by 1.1979 million barrels.

Distillate stockpiles fell by 245.000 barrels this week, compared with last week’s rise by 502.000 barrels.

This week Cushing stockpiles fell by 485.000 barrels, after last week’s drop by 1.735 million barrels.

Oil prices for the week

Oil prices began to rise on Monday and continued to rise on Tuesday to offset consecutive losses a week ago when fears of low oil demand began.

West Texas Intermediate crude rose 3% by Tuesday afternoon before data publishing.

West Texas intermediate reached 67.75$ in trades by midday (more than one dollar in the week), Brent crude rose 3.58% to 71.21$ per barrel.

Oil production weekly rates

While American stockpiles continued to drop, the American oil crude production rose to 11.4 million barrels
for the next week in a row (100.000 barrels per day rise throughout the week).

A big oil company’s contributions to stop the covid-19 spread

Chevron Corporation, the big American company, required its employees to receive COVID-19 vaccinations and studies to make it compulsory for its entire labor force,
according to Wall Street Journal (WSJ) on Monday.

Briden Brydell Chevron’s spokesperson said that the traveling international employees, those on ships flying the American flag,
and expatriate employees are required to receive COVID-19 vaccinations.

Chevron will require its employees in the Mexican gulf and the support staff on the beach to receive vaccinations by November.

“The company is committed to protecting our nation,
we see that vaccines are the best protection against the virus,” BRIDEN said.

The company studies if it is possible for its employees to receive vaccinations in all working units depending on the affordability of vaccines in countries Chevron has branches in and depending on virus spread in all working units.

Chevron of 47.000 employees witnessed infections amongst its employees that delayed its plans to get employees back to offices in California and Texas.

Chevron as one of the first oil and gas companies needs vaccines as the sector suffers a delay in work and taking shifts onshore platforms since the strike of the virus.

Hess Corporation requires vaccines for its employees in the Mexican gulf
by November 1
st. Valero Energy Corporation also requires its new employees to receive vaccinations.

Refiner Phillips 66 does not require to afford vaccines although it strongly encourages employees to receive vaccinations,
Greg Garland is the chairman and chief executive officer of WSJ. In the UK,
oil & gas UK said that it encourages all members of the labor force to receive COVID-19 vaccinations.

Libya needs to increase oil production to begin an economic recovery

“In the next year, Libya needs to increase its oil production by 40% as it is the main and only source of foreign currency income
in order to afford expenditures and get the economic activity back as it was affected by ten years of civil war.”Saddek Elkaber in an interview with Bloomberg, on Monday.

He also said that Libya’s current production is 1.3 million barrels per day, and these production rates should rise in 2022.

Libya as not included in OPEC’s reductions should raise its daily production to 1.8 million barrels in 2022.

Saddek also mentioned to Bloomberg that these production rates would get 35 billion dollars
if it stabilized and in case the prices reached 60$ per barrel.

This year as oil production is stabilized Libya would get revenues of 25 billion dollars, according to statements by the governor of the central bank.

That will be great progress as Libya only gets 3.6 billion dollars in 2020 as its oil exports stopped
for eight months since its exporting stations were surrounded,
yet Libya would face a problem in increasing its production rates to these levels.

“Libya would increase its oil production to 1.6 million barrels per day by half of 2022
if the sector did not get the funding needed.” Oun Libya’s oil minister to Agenza Nova last month.

The lack of money needed for infrastructure maintenance and repairs and the conflict between the minister
and Mustafa Sanalla chairman of the national oil corporation would hinder Libya’s attempts to raise production
to 1.6 million barrels that were produced for the last time during Al-Qadhafi’s rule, ten years ago.

Uganda suspends non-governmental organizations for oil projects

Uganda suspended 54 non-governmental organizations for not being committed to domestic laws
including organizations defending the people’s rights in planned oil projects in the African country.

Uganda says that these organizations interfere in domestic policies.

Uganda assigned in previous time this year an agreement with Tanzania and two main oil companies
to establish a pipeline of 3.5 billion dollars to shift Uganda’s oil to the Tanzanian coast to international markets.

Crude oil pipeline project in east Africa by a length of 1443km
will shift oil from Uganda to Tanga port in Tanzania,
as Uganda owns nearly 6.5 billion barrels of crude oil it is working hard to encourage foreign investments.

Uganda aims to improve the oil and gas industry greatly in the next ten years,
at the current time, about 1.4 billion barrels are thought to be restored.

US Oil inventories fall by 1.6 million barrels