Oil decreased to below $100


Oil decreased to below $100 and a big increase in US inventories

The American Petroleum Institute (API) announced a great increase in crude oil inventories of 4.762 million barrels this week
while analysts expected a decline of 1.933 million barrels.

This increase comes at a time when the Ministry of Energy released 6.9 million barrels
of strategic oil reserves in the week ending on July 8, to 485.1 million barrels.

US crude inventories have lost about 63 million barrels since the beginning of 2021
but net losses are small since the beginning of 2020, according to the American Petroleum Institute data.

Last week, API announced an increase in crude oil inventories of 3.825 million barrels
after analysts expected a decrease of 1.1 million barrels.

API also announced an increase in gasoline inventories this week
amounting to 2.927 million barrels for the week ending on July 8
compared to the decline of last week which reached 1.814 million barrels.

This was followed by an increase in the inventory of the distillation products which reached 3.262 million barrels a week
compared to the decline of last week of 635.000 barrels.

Cushing ended the inventory gains by an increase of 298.000 barrels for this week
The inventories 21.330 million barrels
by a slight increase from 21.261 last week, according to Cushing Energy Department.



A change in oil prices this week

Oil production rates

Oil sector’s updates




A change in oil prices this week

West Texas Intermediate crude continued to decrease on Wednesday due to recession fears
and fears of the decline in the Chinese demand because of the presence of the new Covid variable there
West Texas Intermediate crude was traded low by 8.23% a day during the period before the release at $95.52. It is a decrease of approximately $2.50 a week.

Brent crude was traded low by 7.48% during the day at $99.09. This is a decrease of approximately 2 dollars a week.
At the end of the day, West Texas Intermediate crude was traded low at $95.47 (-8.28%), while Brent crude was traded at $99.09(-7.48%).



Oil production rates

US crude oil production data for the week ending on July 1 were at 12.1 million barrels a day
according to the latest Energy Information Management data.

Conditions of oil market this week

The international interest of oil markets, which witnessed the falling of prices again to below $100
has shifted to natural gas, as a storm is formed before winter season of 2022/2023.

While the head of the International Energy Agency, Fatih Birol, praised the importance of clean energy
he also warned against relying on China, as Beijing is scheduled to control 95% of the global solar supply chain by 2025.

In addition to the above, the strength of the US dollar
which rose to the highest level in 20 years, reached equal with the Euro
will keep goods under pressure.

Last decisions of the driving companies for oil market

Suncor, the Canadian Oil Company (Tse:Su) witnessed the resignation of CEO Mark litle after the death of another worker on its production site
which represents the end of the pressure of active investors to repair companies.

The American Oil Company, ConocoPhillips (listed on the New York Stock Exchange under the symbol :NYSE:COP)
may witness a reflection of its wealth in the Alaska project
where Biden’s Administration is said to be looking for ways to launch a $3 billion Willow project
which was banned in 2020 before a local court.

The American Giant Energy Company Exxon Mobil (listed on the New York Stock Exchange under the symbol :NYSE:XOM)
was prevented from selling its oil assets in Nigeria to the local Ciblat Energy company after a court ruling was issued at a time
when the government company NNPC is seeking to obtain permits by itself.

Oil sector’s updates

Hedge funds are increasingly moving than oil

Amid wide fears of stagnation, hedge funds and other money managers have left their oil centers at one of the fastest rates
in the Post-epidemic period, as they sold a total of 201 million barrels during the last four weeks.

Nord Stream turbines return to Germany

The Canadian government granted a sanctions exemption and allowed the gas turbine to the Nord Stream 1 pipeline
which is run by Gazprom, which is currently undergoing planned maintenance for 10 days.

President Biden faces limited Saudi options

Despite the assurances of National Security Adviser Jake Sullivan that US President Biden will pressure for more oil production
the lack of immediate excess energy in Saudi Arabia and the United Arab Emirates
would make oil-related discussions somewhat embarrassing.

14 companies get strategic petroleum reserve allocations in the latest tender

14 companies obtained contracts in the latest sale of raw oil strategy
that witnessed the launch of 45 million barrels (39 million barrels have been allocated)
most notably for the American companies, Valero (NYSE:VLO), Chevron (NYSE :CVX)
and Exxon Mobil (NYSE :XOM).


Texas Hit puts local networks under unprecedented pressure

ERCOT, the Texas Electricity Network operator
called for the population to maintain energy with temperature throughout the state
which exceeded its highest previous levels at 105 degrees Fahrenheit, which led to high regional energy prices.

Indian charcoal imports reach a standard peak

Although international coal prices are still high, India’s charcoal imports in June
made a high record that reached more than 25 million tons,
as the country’s energy demand is growing at the fastest rate in nearly 40 years.

Russian current account rises despite the war

The surplus of the Russian current account has reached a new quarterly record during
the second quarter, as it exceeded $70 billion where the impact of sanctions so far on imports to Russia
is much greater than its impact on its exports of basic commodities abroad.

CPC supplies have been avoided

After several days of causing a stir throughout Europe
the Russian Court of Appeal eased the suspension of the Chinese Communist Party station
a major channel of Kazakh crude, to a fine of $3,200 due to the environmental violations.

Cheniere asks the White House to reduce pollution rules

The American Cheniere Energy Exporting LNG has officially requested
that the Biden Administration be exempted from the limits of national emissions under the US Clean Air Law
which imposes restrictions on carcinogens such as gasoline and formaldehyde.

France begins burning oil for energy

By ultimately developing emergency plans for preventing Russian gas
the major French industry companies such as Michelin (EPA:ML) or Stellantis (BIT:STLA)
with relevant preparations and transformed boilers to work on oil if gas is not available.

Brazil wants the reduced Russian diesel

Brazilian President Jayeer Bolsonaro claimed that a nearby deal with Moscow to buy the reduced Russian diesel,
which could reduce his long-term confrontation with the National Oil Company Petrobras
(listed on the New York Stock Exchange under the symbol :NYSE:PBR)
regarding fuel pricing in the country located in South America.