Will Washington withdraw from its strategic stocks to reduce energy prices?

Energy affairs advisor and former OPEC director of energy studies, Dr. Faisal Al-Fayek, said the “OPEC +” alliance did not respond to pressure from the White House to increase production, because the market needs this amount of oil, and adapted to the gradual increase of 400,000 barrels per day , until next December.

Al-Fayek added, in an interview with Al-Arabiya, today, Sunday, that next month we will see the “OPEC +” strategy that the market needs for the fifth consecutive year in 2022.

He explained that there is a big media hype about the US challenge due to Saudi Aramco’s rising price differences, very small differences in the range of only $ 3, a monthly increase or decrease on the price criterion, explaining that if it were a challenge, oil would be valued as the auto are priced in America, It is the consuming countries that price the oil, not the producing countries, indicating the great pressures of the consuming countries on the country producers in this period.

Dr Faisal Al-Fayek pointed out that the highest price for crude oil was $ 3.30 for Northwest Europe and $ 2.20 for Asia, which are monthly differences calculated by Aramco and in which refinery profit margins are calculated, especially since next month will be the winter season and seeing a strong demand for heating oils, repeating itself from Arab crude, and these differences are very evident.

The former OPEC director of energy studies said the difference between Brent and Dubai crude oil is currently over $ 4, higher than in early 2019, indicating high demand for high-content oils. of sulfur.

Al-Fayek explained that the US strategic stock is currently 620 million barrels, and it is enough for a period of only 31 days, and therefore it is better to use the other option, which is to prevent export after. his return in 2015, noting that the United States exported 5 million barrels of petroleum derivatives last week.

He added that US energy policy needs to be reconsidered for the world’s largest oil consumer, explaining that America consumes about 8.5 million barrels per day of gasoline daily, the price of which has exceeded $ 3 per day. gallon, the highest level since 2014.

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