Oil grows on OPEC cohesion
The price of oil (December Brent futures) on Monday October 25 by 16.57 GMT 3 rose 1.2% to $85.6 per barrel of Brent. Bidders assess OPEC’s comments on the prospects of lifting restrictions on oil production by the alliance. A number of OPEC members led by Saudi Arabia on Monday emphasized the need to maintain a cautious approach to the issue of the rate of increase in oil production. At the same time, Saudi Energy Minister Prince Abdulaziz bin Salman recalled that additional demand due to the transition enterprises generating electricity from gas to oil can amount to 500-600 thousand barrels per day (or no more than 0.5% of world consumption), provided that winter is cold. However, he pointed to the risk of a return of global commercial oil reserves to significant growth in 2022, since fuel consumption by the transport sector is still limited.
Ben Salman explained the reasons for rising gas prices in the United States by jumping 10 times the cost of ethanol with which Americans mix gasoline. He also pointed to a low level fuel reserves in the United States and the fact that production in the United States has not yet recovered 2-2.5 million barrels per day after Hurricane Ida. In this regard, the Saudi minister advised Biden to either ensure greater fuel availability or think about restricting his exports from the country. Earlier, the US president said that OPEC restrictions on oil production are the reason for the surge in fuel prices in the US market and made it clear that intensive negotiations are underway on this topic.
Baker Hughes on Friday recorded a fall last the week of the number of active oil rigs in the United States – for the first time in 7 weeks – for 2 units to 443 units. United Overseas Bank experts, in turn, record that oil reserves at the Cushing terminal (provides trading in oil fubbers at NYMEX) are rapidly approaching critically low levels, similar to those when oil cost more than $100 per barrel.
Qatar Energy (formerly Qatar Petroleum) has agreed with the U.S. ExxonMobil to acquire a stake in a exploration license in Canada – offshore Newfoundland and Labrador. The French TotalEnergies (formerly Total) and Saudi Saudi Aramco launched the first two retail sales chain service stations in Saudi Arabia – in Riyadh and Saihat (in the Eastern province of the country). The network will include gas stations under the Aramco or TotalEnergies brands, providing motorists with premium fuel and retail services.