Decline in world oil prices and ambiguity surrounds «OPEC» decision about production

Decline in world oil prices and ambiguity surrounds «OPEC» decision about production

26-11-2016 07:46 PM



Orbit News -

London, Astana, Singapore, Beijing - Reuters

Oil prices fell yesterday back of higher dollar and the uncertainty surrounding the resolution of «OPEC» expected on production cuts at its meeting next week. But the standard contracts for raw materials tend to end the week on a nearly four percent gain.

The total circulation of the global Brent crude blend «Brent» rate futures to $ 48.55 a barrel , down 45 cents. And the low US crude futures 40 cents to 47.56 dollars a barrel. The trading activity in the already allocated contracts weak, after the US Thanksgiving Day holiday and ahead of the weekend. And it influenced the market basically the movement of the dollar , which this week reached levels not seen since 2003 against a basket of other currencies. And perhaps limit the US currency rising demand for the fuel, because of the increased cost to the holders of other currencies.

Traders noted that the reports about increasing the state oil company «Saudi Aramco» oil supplies to some Asian customers in January (January) cast a shadow over the markets as well. What contributed to the negative landing, China 's imports of crude oil in October (October skies last), to the lowest level on a daily basis since January.

But analysts considered that the fundamental factors have not experienced a change pointing away from the concerns associated with the fate of a plan led by Saudi Arabia, the agreement Organization of Petroleum Exporting Countries (OPEC) and other producers to cut crude production by the organization next week. She drew informed sources that «Saudi Aramco» agreed to supply more crude to some of its customers in Asia for download in January, in the light of the continued adoption of maintaining the market share strategy. It reported that Saudi Arabia indicate flexibility to meet customer demand, not waiving its market share , even if they are working with «OPEC» members to put the finishing touches on plans to cut production in the next WTO meeting.

And witnessing the Saudi Arabian Light crude superior quality strong demand in Asia, due to competitive prices and high yields of naphtha which is used in the production of petrochemicals. Trade sources said that some Asian refiners also requested, charging more than the average of the crude in January, but «Aramco» has not adhered to any increase in the quantities yet.

Furthermore, a source at the Ministry of Energy in Kazakhstan announced yesterday that the Energy Minister Kanat Bozzombayev planned to attend the «OPEC» Organization meeting in Vienna scheduled for the 30th of this month, with the organization and some producers hoped outside in reaching an agreement to cut production.

In China, customs data showed yesterday, that Russia establish its position at the top of the list of oil suppliers to China 's largest net importer in the world, to extract the lead of Saudi Arabia in the first ten months of the year. Russia also regained its monthly from Angola the lead , which was the largest suppliers of crude to China in September, according to the data.

And increased China 's imports of Russian crude oil 39 percent on an annual basis in October, to 1.12 million barrels per day , making Russia the largest suppliers. Russia was also the largest suppliers of crude to China in the first ten months of the year, exports about 1.03 million barrels a day in that period, according to customs data.

But China 's total imports of crude oil fell in October, from a record high reached in the previous month to reach its lowest level on a daily basis since January. Independent refiners trimmed their purchases, due to higher prices and tighter government restrictions on the import activities.

It jumped and crude oil imports from Iran in October 129 percent year on year to 773 thousand and 860 barrels per day, while China 's imports from Iraq rose 60 percent to 875 thousand and 400 barrels per day.

And decreased oil imports from Saudi Arabia, which has been the practice to be the largest suppliers to China, it rose 0.28 percent to 935 thousand and 800 barrels per day.

The data released days of «OPEC» meeting before the end of the month, to put the final touches to a planned cut production to support prices , which are still below $ 50 a barrel because of oversupply.

And exempted Libya and Nigeria of the planned cuts, since affected the production of the two countries as a result of the conflict, along with Iran , which has suffered an exemption from sanctions.

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