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Producers face a dilemma of resisting temptations of $ 70 per barrel of oil DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Producers face a dilemma of resisting temptations of $ 70 per barrel of oil

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Producers face a dilemma of resisting temptations of $ 70 per barrel of oil Empty Producers face a dilemma of resisting temptations of $ 70 per barrel of oil

Post by RamblerNash Sun Jan 14, 2018 2:52 pm

Producers face a dilemma of resisting temptations of $ 70 per barrel of oil

Producers face a dilemma of resisting temptations of $ 70 per barrel of oil 5013

14/01/2018

Economynews - Baghdad

A report issued by the agency "Platts" International Oil Information, that a number of oil producers face the dilemma of rising crude prices, which is tempting to increase their income, especially in the face of financial distress.

"The rise in prices, at the same time, has the direct effect of encouraging US producers to increase the production of oil shale oil, noting that US production has become in turn a larger share of the share of the global market."

Some analysts believe that US oil companies may actually ignore the desire to spend more money on drilling and increase the number of rigs and replace it by exercising greater financial and investment caution and focus on intensifying efforts to try to strengthen Financial resources of energy companies ".

"China's latest oil imports data indicate that Beijing imported 33.7 million barrels last month, pushing it to surpass the United States to become the world's largest oil importer, reinforcing the Asian demand position in leading the global demand for oil," the report said. Other energy resources ".

The report stressed that crude prices on the path of the upward trend for the seventh month in a row by the crisis of Iran and US sanctions against them raised crude oil futures to their highest levels in more than three years.

"The monthly fluctuation rate of Brent crude is currently in the range of 20-25 percent," he said, pointing out that price volatility in all probability tends to move upwards and reach 25-30 percent and that volatility is likely to increase in the short term. .

According to the report, the increase in monthly volatility is likely to cause further turmoil in the prices of Brent crude, but in the coming weeks the market is likely to recover and move slowly as soon as the situation stabilizes and the low price volatility.

The Brent report showed that Brent made record gains due to data showed that US crude stocks fell for eight weeks in a row, and that the strong commitment of producers to reduce oil supply - led by OPEC in cooperation with independent producers led by Russia - led to a contraction supply In the global market, which contributed to the dynamics of rising prices at an accelerated rate.

"With prices reaching $ 70 a barrel, it has raised a number of questions in the market, which many analysts have expressed about the ability of producers in OPEC and abroad to resist the temptation to pump more crude," the report said. Analysts have questioned the ability of producers to withstand this temptation.

The high price level is a stumbling block for producers in general and OPEC countries in particular, the report said, pointing out that rising revenues and oil revenues mean more money flowing to the public coffers in the short-term production countries.

The quarterly report expected the next quarterly "quarterly" to reflect the latest forecast of capital expenditures for US energy companies and how companies would deal with the wave of high oil prices objectively and accurately.

The report by the Platts agency highlighted a warning from the US Energy Information Administration (EIA) that US crude production could exceed the level of 10 million barrels per day by next month, and US production could also rise to the level of 11 million barrels per day by November, 2018.

The report said last week was a completely different week for crude oil, pointing out that it is very difficult to justify reaching the level of $ 70 a barrel right now, contrary to most of the expectations prior to this period of the new year.

http://economy-news.net/content.php?id=10600
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