Wataniya Petroleum Company

In this article, we analyze the Wataniya petroleum company, the bitumen

market and the global variable. Hope you find this article useful. As the

news agencies reported, when the successful results of the Corona vaccines

were published one by one, the price of oil also got out of the trap it was

in and rose for seven consecutive weeks, but last week they cut the trend short.

Bitumen price

Reversal of oil prices after seven weeks

As you might know, the global oil markets, which were close due to the

Christmas holidays and ended the working week on Thursday, experienced

a 1.8% drop in prices over four days. On the one hand, experts say,

the emergence of one or two species of the corona mutation has raised

concerns for investors about its potentially detrimental effects on oil

demand; however, there is no evidence that the new Covid-19 is more dangerous.

Wataniya Petroleum Company and the oil market

Analysts, on the other hand, have warned over the past few days,

with black gold hitting a record high of over nine months that oil prices

are jumping further, as they are around $52 for Brent and $49 for West

Texas Intermediate is not in line with market realities and is more of a

“look to the future” for futures market speculators. The same attitude

helped correct prices last week. Nevertheless, there is positive news

of strong demand, especially in East Asia, and the physical market is gaining strength.

Black gold drop and Wataniya Petroleum Company

Generally speaking, Oil fell for the first time since October last week as

the coronavirus mutated in Britain and spread to some European countries,

as well as whispers of it elsewhere, putting energy demand for greater risk

as it tightened quarantine. It’s also needful to mention that US crude oil

(West Texas Intermediate) and Brent index fell 1.8 percent last week

and closed at $48.23 and $5.29 a barrel at the end of the trading day on Thursday. However, oil indices rose on Thursday due to Britain’s historic trade deal

with the European Union following the country’s secession.

Besides, Traffic restrictions in the UK have become wider than before,

with China announcing it will suspend all flights to or from the UK. In Sydney, Australia, the number of corona disease cases is growing, and in the

United States, the number of patients admitted to New York City

has reached its highest level since May.

Additionally, Egin Capital analyst John Kilduff told Bloomberg that “any

setback in the fight against Corona is accompanied by a sale (of oil stocks);

“As we saw this week.” “Demand looks fragile in early January,

especially as more quarantine is on the way,” Kilduff said. “This is increasingly likely to happen if there is a jump in the number of patients after Christmas.” After a seven-week oil price rally that was fueled by the excitement

of major advances in vaccine production, weak oil points to concerns

about the duration of the vaccine’s widespread distribution and its

effect on energy demand. At the same time, OPEC and its allies plan

to gradually increase oil supplies to the market, which is another risk factor.

Wataniya Petroleum Company and the OPEC Plus

At the beginning of the week, unconfirmed news broke from sources who

did not want to be named, stating that Russia intends to continue to

increase production of 500,000 barrels per day of OPEC Plus at their

next

meeting on January 4. This means the maximum growth of the 23-nation coalition’s production, which supplies more than half of the world’s oil. Earlier this month, the group agreed to increase production by 500,000 barrels per

day for January, instead of adding 2 million barrels per day from the

beginning of 2021 and to increase supply by more than half in

the next three months during monthly meetings.

Wataniya Petroleum Company and the oil production

In the latest news, Alexander Novak, Russia’s former energy minister,

and current deputy prime minister has confirmed Moscow’s support

for a 500,000-barrel increase in OPEC Plus production for February. “Russia considers the price of oil between $45 and $55 per barrel to be ideal

for continuing the recovery of its production, which was significantly

limited due to the OPEC Plus supply cut agreement,” Novak added.

“If the situation remains normal and stable, we will support this position

(an increase of 500,000 barrels),” he stressed. In addition, the UAE’s

controversial energy minister, in a statement that shows a similar

tendency to Russia, said he was optimistic about a gradual recovery in oil

demand in 2021. Mayor said the distribution of the Corona vaccine

and the improvement in US-China relations were likely to help oil demand. However, he stressed that the recovery in demand is gradual and will not

happen in one or two seasons (first of next year). “I do not see any danger

from additional strains of the virus,” Mayor said, referring to the

Coronavirus mutation and its impact on oil.

Wataniya Petroleum Company and the oil production rate

“The global health sector can find a solution to this virus.” He also said that

OPEC Plus has been able to successfully reduce the effect of the decline in demand and expressed hope that more manufacturers will join the

coalition in the future. “We predict that there will be more downside risks

to rising prices in the energy markets,” Tariq Zahir, a board member at

Tyche Capital Advisors, told Bloomberg about the future of the energy market. “We have already seen declining reforms in oil demand as the

New Year approaches, and with OPEC willing to increase production, demand

may weaken further,” Zahir added. Another factor affecting the oil market

in recent days has been the escalation of tensions in the Middle East

between the United States and Iran, which has escalated with a new

tweet from Trump threatening to hold Iran responsible if an American is killed in the region.

 

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