The international “World Oil” report states that “OPEC” and its allies have confidence in their appropriate policies for the market in its current situation, which depends on relatively deliberate steps in increasing oil production to maintain economic recovery after the crisis. of Covid.
The report indicates that there is room for “OPEC +” to accelerate the pace of supply increases – even within the limits of the current agreement – in the coming months, in light of last October’s failure to meet targets due to manufacturing problems. in some members, including Nigeria and Angola, explaining that the alliance maintains an increase in production of over 400,000 barrels per day, and adheres to the established plan.
Regarding oil reserves in the United States, the report confirmed that Washington has a huge reserve of crude oil, more than 600 million barrels underground. in Louisiana and Texas for major emergencies, and the US strategic reserve is equivalent to the need for crude oil the US imports from “OPEC +” for more than the general, indicating that there is nothing the US administration can do to reduce short-term gasoline prices, according to the Saudi newspaper Al-Iqtisadiah.
He pointed out that in the oil market there is a lot of talk about the launch of US strategic reserves, either in coordination with allies within the International Energy Agency, which includes Germany, the United Kingdom, Japan and South Korea, or even alone as the United States can, and also seeks to release reserves in alliance with non-state member countries of the International Energy Agency such as China and India.
The report indicated that the drop in oil prices last Thursday amid speculations that President Joe Biden will exploit the reserves, noting that outside the state of emergency, the launch of strategic oil reserves is limited to 30 million barrels. which is a small and modest amount, noting the estimates issued by “Goldman Sachs” that even if 60 million barrels were released in the context of an extreme emergency, it would reduce oil prices by less than 5%.
Crude oil prices closed last week’s trading in rise, while Brent crude fell 2% and US crude fell 2.7%, on a weekly basis, on the back of the decision by the producer group of the “OPEC +” alliance to maintain the gradual increase in oil supplies of about 400 thousand barrels a day for December Dec.
Manufacturers attributed their decision to a lack of investment and the inability of some to meet quotas, as well as expectations of slowdown in demand and inventory growth in the first quarter of next year.
The report indicated that any major negative impact on prices will further slow the resumption of shale oil activity in the United States and, in turn, lead to a significant price increase over the next year. The report quotes the UBS banking group confirming that one of the options offered to address the lack of supply to the US market is to study the export ban on US crude oil and the preservation of oil internally, but blocking domestic supplies internally. of the United States. it could lead to a collapse in the prices of some types of crude oil, while gasoline prices will remain high.
Read More About: Business News