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.
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.