2024-05-11 14:31:20
After several weeks of decline, oil prices are rising once more, due to a combination of geopolitical risks, strong demand, low U.S. crude inventories and strong Chinese imports, which have sparked some bullish sentiment on the market, according to a report published by “Oil”. Prices »today.
Brent futures recorded their first weekly gains since early April, approaching $85 per barrel, further supported by the decline in the US labor market (jobless claims are the highest in 8 months) and the Rafah operation in Gaza.
The report highlights that, according to media reports, Republican presidential candidate Donald Trump has pledged to repeal the Biden administration’s environmental rules, end the current freeze on new liquefied natural gas export terminals , and asked them to raise $1 billion for his campaign.
The report notes that China is increasing its oil imports, with these increasing on an annual basis to around 10.88 million barrels per day last month, an increase of 5.5% compared to April 2023, with a strengthening of refinery activity due to high activity during the period. Labor Day as well as an improvement in manufacturing activity.
Additionally, a survey by international oil information agency Platts showed that OPEC+ crude oil production declined by 210,000 barrels per day on a monthly basis to 41.04 million barrels per day. in April, indicating that Russia has started to implement a deeper reduction in production. production amid a series of Ukrainian drone attacks on its refineries.
He explained that this reduction would probably not be enough to ease tensions linked to compliance with Russia’s obligations, which is reluctant to meet its target, and Iraq and Kazakhstan which continue to produce quantities well above their quotas.
The survey shows OPEC+ production is at its lowest level since August, and that doesn’t include Angola, which withdrew from the group in December.
He said OPEC produced 26.63 million barrels per day in April, a decrease of 30,000 barrels per day from March volumes, noting that its non-OPEC allies, led by Russia, had recorded 14.41 million barrels per day, a decrease of 180,000 barrels per day. day on a monthly basis.
The survey sees most of the decline as coming from Russia, which has pledged to implement a deeper production cut from April and has faced unrest over Ukrainian attacks on its refineries and flooding in some oil-producing areas.
The survey highlights that Saudi Arabia continues to meet its quota, having reduced its production by 10,000 barrels per day to 8.98 million barrels per day in April. It showed that OPEC+ countries that implemented the cuts produced 249,000 barrels per day above the quota in April, with a compliance rate of 96.97%, compared to a compliance rate by 97.9% in March. The coalition also produced above target in January. and February, as compliance rates reached 96.5% and 97.8%, respectively.
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