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Market News International oil prices are falling, and the Gulf of Mexico is slowly resuming production, but other suppliers are not idle

International oil prices are falling, and the Gulf of Mexico is slowly resuming production, but other suppliers are not idle

On September 17, international oil prices fell as more production facilities in the Gulf of Mexico restarted after two hurricanes. However, as production recovery looks lagging behind demand, the two major crude oil futures have both gained more than 3% this week. Saudi Arabia's July crude oil exports rose to the highest since January, which also depressed oil prices.

2021-09-17
10194
On Friday (September 17), international oil prices fell as more production facilities in the Gulf of Mexico restarted after two hurricanes. Saudi Arabia's crude oil exports in July rose to the highest since January.

At GMT+8 16:06, NYMEX crude oil futures fell 0.66% to US$72.13/barrel; ICE Brent crude oil futures fell 0.54% to US$75.26/barrel.


Edward Moya, senior market analyst at OANDA, said: "Oil prices have weakened slightly, and U.S. offshore crude oil production has continued to recover slowly, while most of Asia has encountered some obstacles in the process of returning to normal, and some countries are still working to contain the spread of the Delta variant virus."

The two major contracts have climbed more than 3% this week, because after the destruction of facilities by Hurricane Ida in August and the attack of tropical storm Nicholas this week, the recovery of U.S. Gulf of Mexico production was slower than expected. As of Thursday, two and a half weeks have passed since Hurricane Ida hit, and about 28% of U.S. Gulf of Mexico crude oil production is still closed.

Commonwealth Bank of Australia (CBA) commodity analyst Vivek Dhar said: "The time required for production to recover is still longer than people think. This has always been a supporting factor for the market, and we will enter a more serious (supply) shortage situation- The market seems to think so obviously."

Preliminary data from the U.S. Energy Information Administration (EIA) show that US crude oil exports in September have fallen from 3 million barrels per day at the end of August to between 2.34-26.2 million barrels per day.

Dhar also pointed out that data from the International Energy Agency (IEA) this week showed that the Organization for Economic Cooperation and Development (OECD) oil inventories fell to a low point in November because the recovery in fuel demand is expected to exceed supply.

The Joint Organization Data Initiative (JODI) said on Thursday that Saudi Arabia’s July crude oil exports rose to the highest since January of 6.327 million barrels per day; Saudi Arabia’s July crude oil output increased by 547,000 barrels per day from the previous month to 9.474 million barrels per day. .

Partners such as OPEC and Russia (OPEC+) began to cut record production cuts in July, while Saudi Arabia began to phase out voluntary production cuts. Saudi Arabia and other OPEC member states provide JODI with monthly export data.

The Iraqi Ministry of Petroleum said on Thursday that Iraq has signed preliminary agreements with SEAB of Sweden and Limak of Turkey to build a 70,000 barrels per day oil refinery near the northern city of Mosul. Ministry of Petroleum officials said that the refinery will use heavy crude oil from the northern Qayyara oil field to produce fuel, but did not provide an estimated cost of the project.

Guyana’s Vice President Bharrat Jagdeo said that the country has authorized Saudi Aramco for a one-year contract to market the government’s share of the country’s crude oil production. The country's previous negotiations with Indian refineries on the export of Guyana's light oil failed to reach an agreement.

At the end of 2019, a consortium led by Exxon Mobil Corporation began to produce crude oil off the coast of Guyana, and the country has become a new global energy hotspot. The current output is about 120,000 barrels per day. However, Guyana lacks experience in operating the oil industry, and the country started the process of looking for agent marketing at the beginning of this year.
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