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Stability of International Oil Prices – Al-Hayat Newspaper




56 minutes on November 9, 2018
– Last updated in
November 8, 2018 / 21:43

Oil prices have stabilized yesterday, under pressure, when the United States became the world's largest crude oil producer, reaching its highest level ever, but oil is also supported, as China continues on another record record record record.

Burned raw futures for the month were close to $ 72 per barrel, down 7 cents from the previous closing. US West Texas Intermediate Crude Futures was $ 61.72 per barrel, up 5 cents from the previous settlement price.

US benchmark production drives prices up to 11.6 million bpd during the week ending March 2, according to data from the US Energy Information Administration. It is three times US production 10 years ago and has been 22.2 percent higher since the beginning of the year. Thus, the United States becomes the world's largest raw producer. More US oil is likely to be pumped, as the Energy Information Agency expects production to exceed 12 million bpd in mid 2019 due to higher oil production.

Production not only increases in the US but also in some other countries, including Russia, Saudi Arabia, Iraq and Brazil, causing concern among producers for reversal of surplus assets that have pushed oil prices between 2014 and 2017. But China's imports of crude oil are record low, which reduces concern over renewed raw prices.

Tulip data showed yesterday that China's crude oil imports grew to an overall high daily in October, supported by private refinery record demand and strong margins. The general administration of customs duties showed that in October imports increased by 32 per cent from year to year to 40.80 million tonnes, equivalent to 9.61 million barrels per day, compared with 9.05 million barrels in September. The most recent record height for imports on a daily basis was 9.60 million bpd in April.

Imports increased by 8.1 percent in the first 10 months of this year compared with the same period last year to 377.16 million tonnes, or 9.06 million bpd, and are heading towards the highest annual transport. Standard volumes came as a result of strong imports from private refineries in China.

The total volume of October imports is in line with the forecast for 40.95 million tonnes of refinery. Imports of natural gas in October through pipelines and liquefied natural gas reached 7.3 million tonnes, an increase of 25.6 percent compared with the same month last year, but less than 7.62 million tonnes in September.

In Japan, the president of Fuji Oil Refining Company, Atsu Shibota Refinery, said the company was considering signing a new contract for Iranian oil imports after Japan received an exception to US sanctions against Tehran. He added that Iranian oil is competitive in comparison with other commodities.

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