Oil analysts expect volatility in crude oil prices to continue this week as Brent and U.S. crude fell 13 percent after the United States announced it was pumping strategic oil reserves of one million barrels a day. The first six months of next May.
Analysts say prices have received other downward pressures due to the large-scale renewed corona damage crisis in China, which led to the return of the financial capital Shanghai to a tight closure (in addition to the (OPEC +) decision.) Daily. “
There are still price factors in the market, especially the geopolitical risks associated with the Russo-Ukrainian war and Western sanctions on the Russian energy sector, and the decline in US oil stocks as an indicator of a global recovery. Demand for crude oil and fuel.
In this context, Rose Kennedy, Managing Director, QHA Energy Services, told The Economist: This is in line with the expectation that production will increase to more than two million barrels per day, ”according to Gulf Intelligence estimates.
He pointed out that the United States plans to sell one million barrels a day of strategic oil reserves for the next six months, which will have a far-reaching impact on the market and come as part of an effort to raise petrol prices. After the Russian-Ukrainian crisis.
Tamir Desperett, director of business development for the international company “Technique Group”, believes that the planned US and European sanctions on the Russian oil sector have led to chaos, despite the fact that many European countries find it difficult to implement. Considering that many European countries depend on one percent of Russian gas, it is noteworthy that the expectations published by “Standard & Poor’s Global” point to the fact that Russia’s crude oil production will stop at 2.8 million barrels a day due to exports, disruptions as a result of buyers’ concerns.
He pointed out that global demand is facing renewed difficulties due to the recurrence of epidemic risks in China, which has been observing the closure of crude oil markets in China, which has imposed restrictions on movements in several cities to combat the re-emergence of the Omicron mutant.
According to Peter Beacher, an economist and expert on energy law, at last week’s cabinet meeting, the OPEC + Confederation assured world markets that it would continue to increase its quota of crude oil production, despite previous setbacks and setbacks. Russia’s oil supply signifies “OPEC +” ministers’ commitment to increase planned production to 432,000 barrels a day next May.
He pointed out that the “OPEC +” team manages the international distribution system effectively and has a long-term vision to achieve market equilibrium and is not based on quick reactions to respond to any pressures. It controls half of the global oil supply and gradually puts an end to production shortfalls.
In turn, Ervy Nahar, an oil and gas expert at the international organization “African Leadership”, says, “(OPEC +) is committed to increasing monthly production, although some members have suffered from a lack of investment and the group has driven about one thing more than its targets for February (February) in the past. There were less than a million barrels of corona infection. “
Failing to reach a nuclear deal with Iran shattered earlier expectations that betting on a one-million-barrel oil supply to the market would soon return, and he pointed out that Russian supplies now pose less risk in European light. Warnings against the imposition of sanctions on oil and gas supplies and the dependence of Russia on the Chinese market and many Asian markets, in addition to imposing the ruble deal with so-called non-friendly countries.
In terms of prices, benchmark deals for Brent crude and US Texas crude fell about 13 percent, the biggest weekly decline in two years, after US President Joe Biden announced on Thursday that he would release oil from emergency stocks.
Brent crude futures fell 32 cents, or 0.3 percent, to $ 104.39 a barrel, while US crude futures fell $ 1.01 or 1 percent to $ 99.27.
U.S. energy companies have increased the number of oil and gas leaks for the second week in a row, but growth in the number of operating rings has been slower as companies continue to shift profits to shareholders after significant increases in oil prices. Production. JPMorgan said in a statement that it had kept its price forecast at $ 114 a barrel in the second quarter and $ 101 a barrel in the second half of 2022.
On the other hand, the total number of active rigs in the United States has tripled this week, with the WTI trading at more than $ 100.90 a barrel, and the total number of rigs has increased to 673 rickshaws this week – 243 rickshaws. This time in 2021 Rick.
Baker Hughes’ weekly report on drilling operations showed that oilfields in the United States increased by two rickshaws to 533 and gas varieties by one to 138. The various rigs remained unchanged. “Drilling activity in the United States has increased again in the last few months,” the report added.
A recent report by the Energy Information Administration indicates that US crude rose to 11.7 million barrels a day for the first time in ten weeks as Americans lamented the rise in petrol prices at the pump. In the week ending March 25, the number of basin rigs also increased.