Saudi Arabia news, Saudi news today: Gasoline and diesel will lead the growth in oil demand in 2022, supported by the strong return of transportation Source of the news – Saudi News – Source with news details Gasoline and diesel will lead the growth in oil demand in 2022, supported by the strong return in transportation:
Saudi Arabia News Today, the UAE said on Thursday that no agreement had yet been reached to resolve the two-week OPEC+ oil crisis after this month, although coalition delegations indicated progress in discussions. Several delegates said that talks took place between Saudi Arabia – the de facto leader of OPEC – and the UAE, and that the possibility of adjusting the UAE production baseline, which sets the quotas of group members and their compliance with the OPEC + agreement for production, was raised to 3.65 million barrels per day, the UAE accepted a reference level of 3.168 million barrels On the day when the two-year OPEC + alliance agreement was agreed last May. Abu Dhabi blocked a proposal to extend the OPEC+ agreement beyond its expiration in April 2022 until December of next year unless its baseline is changed to better reflect increases in the Emirates’ production capacity, the production policy strategy also included a collective increase of 400,000 barrels per day per month From August 2021 to December 2022, with an option to stop for three months, the agreement expires in September next year if this clause is not invoked.
It is understood that any agreement will be subject to a vote by all 23 OPEC + members, and no date has yet been set for a meeting to replace the meeting that was canceled earlier this month, delegates mentioned earlier this week one possibility in the short term, he indicated. Some OPEC+ delegates suggested that agreeing to the UAE’s request “might open a Pandora’s box”, and called on each member state to request exceptions to its obligations.
The September Brent crude contract briefly lost nearly a dollar a barrel in daily trading, but regained some of that to trade around $76.18 a barrel. However, according to OPEC, a strong recovery could lead to a rapid rise in inflation and thus higher interest rates, so high sovereign debt levels could become a huge burden on the financial health of many economies.
The big drop in US crude inventories in June added support to the market, Brent crude rose $5.10 per month, or 7.5%, in June to $73.41 a barrel on average, and WTI increased $6.20, month-over-month, or 9.5%, averaging At $71.35 a barrel, Brent crude was $23.13 higher year on year, or 54.9%, at $65.23 a barrel, while WTI was $25.40, or 69.0% higher, at $62.22 a barrel, compared to the same period a year earlier. .
The prices of Omani crude oil futures contracts in June also rose by $5.30 per month, or 8.0%, to settle at $71.75 a barrel, since the beginning of the year to date, the Oman DME rose by $22.01, or 52.6%, at $63.88 a barrel.
In terms of fuel, gasoline and diesel are expected to drive oil demand growth in 2022, and the gradual return to normal is expected to support transportation in major consuming countries, such as the United States, China and India, and diesel demand will support trucking, as well as increase activities Light distillates will be supported by capacity additions from NGL plants in the United States, propane dehydrogenation plants in China, and stable petrochemical margins.
Jet fuel will continue to recover, with domestic and international flights improving, but business travel is expected to be delayed, and uncertainties remain, including challenges related to the pandemic. US production is expected to grow by 0.7 million barrels per day, with oil production growth in North America, forecast at 0.9 million barrels per day, coming from the Permian Basin, Gulf of Mexico and Canada’s oil sands.
Brazil, Norway, Guyana, China, India, and the United Kingdom are expected to increase through ramping up existing projects and new field projects, moreover, OPEC NGL plants are expected to grow at a rate of 0.1mb/d year on year, given 2022 looms risks and uncertainties. Significantly and requiring close monitoring to ensure recovery from the pandemic, OPEC and its partners in the OPEC+ alliance will continue to carefully assess the various factors that could influence the ongoing developments on a monthly basis, thus being able to act quickly in a very timely manner to protect the delicate market equilibrium recovery.
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