The head of the Vienna Bureau of Energy Studies said the oil market
and buy bitumen idea were concerned that shale production would slow down if Democrats won the US election.”As long as shale was limited to the US domestic market,
conventional crude oil producers were not too worried,” he said. But by the time Shale reached production of $ 10 million
and began entering traditional crude oil markets, it was no longer tolerable.
He also added: “In fact, the current link between OPEC
and non-OPEC is due to the emergence of shale. Shale oil crossed the OPEC and OPEC Plus red lines. Under such circumstances, OPEC Plus’ response was to start a price war in which the
price would stay out of the $ 60 range enough to make a significant portion of shale production out of reach.
At the same time, its price should not be so low that conventional crude oil producers and
buy bitumen facts face serious economic and financial crises.
OPEC sensitivity to increasing oil storage levels, how “buy bitumen ” changes?
The international oil market expert said: “We should examine how much consumption is under the current market conditions.” How much is the storage and consumption of oil supplied to the world market?
As a matter of fact, OPEC is highly sensitive to the level of reserves. Therefore, OPEC’s main goal is to lower the average level of reserves to the average level of the last five years.
“OPEC Plus has been monitoring the international market for some time in the form of monthly ministerial meetings,
” said the administrator, noting that information from the OPEC Secretary-General indicates that the average level of stockpiles has slightly decreased. Such a move was only in the history of OPEC, only in the 1980s, shortly before the early 1990s,
when OPEC was facing severe political crises and turmoil.
Cheap oil in the Chinese basket, how do they buy bitumen?
According to the head of the Vienna Office for Energy Studies, low prices on the one hand
and lower shipping costs on the other have encouraged some consuming countries to buy bitumen and more oil. This practice in China and the countries of the region is more than in other countries.
He explained: “At the same time, the reports of the OPEC Secretariat have paid attention to two issues;
First, the global decline in demand is lower than initially estimated at the beginning of the corona outbreak.
Thus, in the first quarter of 2020, they have estimated that demand will fall by 30-30 million barrels per day. Moreover, current estimates focus on reducing demand to the level of 15-15 million barrels per day. Second, the return of the economy
and life to relatively normal conditions has occurred faster than initially estimated.
Although definitive estimates are still difficult, conditions in major oil hotspots, such as China,
Southeast Asia, Europe, and to some extent the United States, have boosted hopes of a gradual return to normal conditions.”Another important factor is the future of the US election and the return of the supply security debate,” said the expert.
Energy self-sufficiency at any cost
As you may know, Shale oil production is associated with costly and sometimes irreparable environmental damage. In fact, what is gained today from the production
and supply of shale will inevitably be spent on repairing and compensating for the damage caused by the cracking process in years.According to the head of the Vienna Office of Energy Studies,
the market is concerned that shale production could slow down if the Democrats win.
Price is likely to stay below $ 50
“It is unlikely that global oil prices will be able to exceed $ 50 a barrel during the remaining months of 2020,”
said the head of the Vienna Office in response to a forecast for future oil prices.It’s worth mentioning that OPEC and non-OPEC are together in pushing shale out of the market. Of course, this does not mean that OPEC Plus wants or
can even remove shale oil from the global oil industry.
He added: “We also had this quota war in the market in the 1980s with newly arrived Norwegian oil. Shale must also be able to play as a rule. Generally, the market share for oilmen is like national sovereignty. The war over market share is real and serious. Within OPEC, there will be a quota war between Saudi Arabia and Iraq
and another quota war between OPEC and non-OPEC.
The United States, as one of the largest producers and consumers of oil, can have a significant
impact on the oil market and the nation’s ability to buy bitumen,
and the political current in this country will not be ineffective in this regard.
Importantly, President Donald Trump has declared one of his most essential policies since
his inauguration to support maximum oil production, and this issue has gained him a large number of followings in Texas.Also, another issue that Donald Trump unveiled
as his policy was that he downplayed the issue of global warming and the Paris Agreement, to maximize its capacity to produce fossil fuels. Trump’s approach boosted US shale oil production,
making it the world’s largest oil producer.So, as you have read, these items affect the market potentiality to buy bitumen, oil , and other petrochemicals.For more information and order now in africa you can contact us