Trump and oil .. Beware of what you wish for it may be achieved
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Trump and oil .. Beware of what you wish for it may be achieved
Admin Wed Jul 04, 2018 8:56 am
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2018/07/04 15:38
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(Encyclopaedia of this day for news ) - Edit - Noha Al-Nahhas:
Mubasher: If oil prices are too high, as US President Donald Trump recently said, the reality is that the supply side accused of causing price rises seems irresponsible.
The US president said in a tweet on Twitter that he had telephoned King Salman bin Abdul Aziz to demand an increase in Saudi Arabia's output by up to 2 million barrels per day because of the decline in the supply of Venezuela and Iran, adding that the latter's approval of his request.
An analysis published by Bloomberg View suggests that by thinking about King Salman's position, for example, Saudi Arabia would like to have about 1.5 million barrels to 2 million barrels per day of spare capacity, to balance the places where the oil market is affected.
OPEC's spare capacity provides an indication of the ability of the world oil market to respond to potential crises that reduce oil supplies.
Although there is some uncertainty as to exactly what Saudi Arabia can produce, Saudi Arabia currently produces 10.15 million barrels per day (bpd), 500,000 bpd or slightly below the record level in mid-2016.
The real export capacity will remain close to 11.5 million barrels per day until the new port in the Red Sea to 15 million barrels per day.
This is largely consistent with figures published by Bloomberg, which showed reserve power in May was less than 1.5 million barrels, a figure that could decline if Saudi Arabia and Russia bear the burden of increasing production by between 700,000 to 1 million bpd after The OPEC meeting held last month.
With Donald Trump pressuring nations to end their oil purchases from Iran, about 2 million barrels per day of oil production may stop even assuming China ignores the US demand. The power cuts at the Sankor Energy plant in Canada will lose 350 Thousand barrels per day during the current month.
Overall, OPEC's reserve capacity is actually less than 3 million barrels per day for the first time in 2008, putting this part of the supply side in the narrowest range seen during the price hike of crude oil to $ 150 a barrel between 2003 and 2008.
According to the International Energy Agency (IEA), reserve power will fall by 1 million bpd by the end of next year for the first time since 2005.
In theory, the solution Trump is looking for is obvious. The huge change in the market since 2003 to 2008 is the massive influx of US wild oil, which flows from negligible levels for Saudi or Russian production to 8.6 million bpd.
In contrast to the rise in the price of Brent crude, which has reached 19% so far this year, Nymex in the region of the pelvic basin rose by only 1.53%.
The problem is how to put all this oil into the market.
Crude refineries in the United States are experiencing significant consumption, which did not break down in January for the first time since data collection began in 1982.
Exports from the Gulf Coast are also stabilizing near levels of just 2.5 million barrels per day (bpd) due to the lack of a Midland pipeline.
Currently, US oil does not appear to save US drivers from rising crude prices. The number of rigs used by rock oil producers has fallen for a third week in a row.
Although this figure is relatively high, this indicates that producers are responding to infrastructure bottlenecks by reducing supply.
Indeed, the best hope for the market is the gloom. The price hikes started last year are becoming more like a shock to oil, as well as the worry that a trade war over tariffs and weak recent estimates of exports.
The solution to the oil market is likely to be more demand than supply, and if Trump wants to lower prices, he must be careful not to do so.
https://translate.googleusercontent.com/translate_c?depth=1&hl=en&prev=search&rurl=translate.google.com&sl=ar&sp=nmt4&u=https://hathalyoum.net/articles/1589440-%25D8%25AA%25D8%25B1%25D8%25A7%25D9%2585%25D8%25A8-%25D9%2588%25D8%25A7%25D9%2584%25D9%2586%25D9%2581%25D8%25B7-%25D8%25A7%25D8%25AD%25D8%25B0%25D8%25B1-%25D9%2585%25D8%25A7-%25D8%25AA%25D8%25AA%25D9%2585%25D9%2586%25D8%25A7%25D9%2587-%25D9%2584%25D8%25A3%25D9%2586%25D9%2587-%25D9%2582%25D8%25AF-&xid=17259,15700002,15700021,15700124,15700149,15700168,15700186,15700191,15700201,15700208&usg=ALkJrhg69Osu6UBPoe_ypXSPCg8vcWa1BQ
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2018/07/04 15:38
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[ltr]
(Encyclopaedia of this day for news ) - Edit - Noha Al-Nahhas:
Mubasher: If oil prices are too high, as US President Donald Trump recently said, the reality is that the supply side accused of causing price rises seems irresponsible.
The US president said in a tweet on Twitter that he had telephoned King Salman bin Abdul Aziz to demand an increase in Saudi Arabia's output by up to 2 million barrels per day because of the decline in the supply of Venezuela and Iran, adding that the latter's approval of his request.
An analysis published by Bloomberg View suggests that by thinking about King Salman's position, for example, Saudi Arabia would like to have about 1.5 million barrels to 2 million barrels per day of spare capacity, to balance the places where the oil market is affected.
OPEC's spare capacity provides an indication of the ability of the world oil market to respond to potential crises that reduce oil supplies.
Although there is some uncertainty as to exactly what Saudi Arabia can produce, Saudi Arabia currently produces 10.15 million barrels per day (bpd), 500,000 bpd or slightly below the record level in mid-2016.
The real export capacity will remain close to 11.5 million barrels per day until the new port in the Red Sea to 15 million barrels per day.
This is largely consistent with figures published by Bloomberg, which showed reserve power in May was less than 1.5 million barrels, a figure that could decline if Saudi Arabia and Russia bear the burden of increasing production by between 700,000 to 1 million bpd after The OPEC meeting held last month.
With Donald Trump pressuring nations to end their oil purchases from Iran, about 2 million barrels per day of oil production may stop even assuming China ignores the US demand. The power cuts at the Sankor Energy plant in Canada will lose 350 Thousand barrels per day during the current month.
Overall, OPEC's reserve capacity is actually less than 3 million barrels per day for the first time in 2008, putting this part of the supply side in the narrowest range seen during the price hike of crude oil to $ 150 a barrel between 2003 and 2008.
According to the International Energy Agency (IEA), reserve power will fall by 1 million bpd by the end of next year for the first time since 2005.
In theory, the solution Trump is looking for is obvious. The huge change in the market since 2003 to 2008 is the massive influx of US wild oil, which flows from negligible levels for Saudi or Russian production to 8.6 million bpd.
In contrast to the rise in the price of Brent crude, which has reached 19% so far this year, Nymex in the region of the pelvic basin rose by only 1.53%.
The problem is how to put all this oil into the market.
Crude refineries in the United States are experiencing significant consumption, which did not break down in January for the first time since data collection began in 1982.
Exports from the Gulf Coast are also stabilizing near levels of just 2.5 million barrels per day (bpd) due to the lack of a Midland pipeline.
Currently, US oil does not appear to save US drivers from rising crude prices. The number of rigs used by rock oil producers has fallen for a third week in a row.
Although this figure is relatively high, this indicates that producers are responding to infrastructure bottlenecks by reducing supply.
Indeed, the best hope for the market is the gloom. The price hikes started last year are becoming more like a shock to oil, as well as the worry that a trade war over tariffs and weak recent estimates of exports.
The solution to the oil market is likely to be more demand than supply, and if Trump wants to lower prices, he must be careful not to do so.
https://translate.googleusercontent.com/translate_c?depth=1&hl=en&prev=search&rurl=translate.google.com&sl=ar&sp=nmt4&u=https://hathalyoum.net/articles/1589440-%25D8%25AA%25D8%25B1%25D8%25A7%25D9%2585%25D8%25A8-%25D9%2588%25D8%25A7%25D9%2584%25D9%2586%25D9%2581%25D8%25B7-%25D8%25A7%25D8%25AD%25D8%25B0%25D8%25B1-%25D9%2585%25D8%25A7-%25D8%25AA%25D8%25AA%25D9%2585%25D9%2586%25D8%25A7%25D9%2587-%25D9%2584%25D8%25A3%25D9%2586%25D9%2587-%25D9%2582%25D8%25AF-&xid=17259,15700002,15700021,15700124,15700149,15700168,15700186,15700191,15700201,15700208&usg=ALkJrhg69Osu6UBPoe_ypXSPCg8vcWa1BQ
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