July 6, 2022

Dubai Week

Complete Dubai News World

الرئيس الأمريكي جو بايدن

US Fuel Oil Capital: “Apocalypse Disaster”

An American has posted a video of a gas station in Texas being shut down because petrol or diesel was not available, despite Texas being the capital of the U.S. oil industry.

Although the price of a gallon of petrol has reached its maximum of $ 4.15 and diesel $ 4.89 (its price has risen 75% in 12 months), there is a crisis in their availability from below, prompting the videographer to say, “Just show you what happens in a final catastrophe.” The world “.

Especially after the Russo-US war, some Americans crossed the border into Mexico to repurchase most of their US stocks and to obtain fuel in light of the severe shortage of U.S. stocks of petrol and diesel. Two decades, towards Europe.

In an article published on Thursday, Mark Mathis, a researcher in the field of energy, threw out the policies of US President Joe Biden’s administration against drilling and piping, rising prices and fuel shortages at stations.

The United States has not installed a “completely new” large refinery since 1977, i.e. for about 45 years, and no new refineries have been planned, but on the contrary, in the wake of the Corona epidemic, Mathis pointed out. , Several refineries were closed, the number of which has now been reduced to 10 refineries.

Decline in US oil stocks

Last Wednesday, US government data showed that oil stocks in the United States fell one million barrels to 419.8 million barrels in the week ended May 20, compared to the expectations of analysts who voted for Reuters. 737 thousand barrels.

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Crude oil reserves at a distribution center in Cushing, Oklahoma, fell 1.1 million barrels last week, according to the Energy Information Administration.

Petrol stocks were down 482,000 barrels to 219.7 million barrels, while it was expected to fall 634,000 barrels.

Distillation stocks, including diesel and heating oil, rose 1.7 million barrels to 106.9 million barrels, against expectations of an increase of 917,000 barrels.

Last week, US crude oil imports fell by 903,000 barrels a day to 2.15 million barrels a day, according to the Energy Information Administration.

Global oil prices

Oil prices rose to a two-month low on Friday, driven by the biggest weekly rise in Brent crude in a month and a half, boosted by the EU ban on Russian oil and the upcoming summer driving season in the United States. .

Brent crude for July delivery was down nine cents at $ 117.31 a barrel at 0247 GMT, up from $ 118.17 in the previous session. But benchmark crude is heading for a 4% gain this week.

US West Texas Intermediate crude futures fell 18 cents, or 0.2%, to $ 113.91 a barrel. US crude oil weekly gains 0.7%.

As Hungary remains a stumbling block, the two major agreements are set to conclude this week as the European Commission continues to seek the support of all 27 member states for the proposed new sanctions against Russia.

A senior Hungarian government aide said it would take three-and-a-half to four years for Russia to stop using crude oil and pump out huge investments to revive its economy, and that it would not support the oil embargo proposed by the EU until an agreement was reached. In all issues.

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“Real supply losses and refusal to accept goods from Russia are going to send these two goods (oil and gas) significantly higher,” said Clifford Bennett, chief economist at ACI Securities.

Prices have increased by about 50% since the beginning of this year.

Six sources in OPEC + told Reuters that the group is expected to abide by the oil production agreement approved during its scheduled meeting on June 2 last year, with production targets increasing to 432,000 barrels a day in July, indicating rejection. Western nations insist on a rapid increase in production in order to control high prices.