According to a Saudi meWest Texas crude oil pricesdia report, the American oil company Exxon Mobil recently discovered huge oil reserves in Pakistan, in the border area of Pakistan close to Iran. According to estimates, this time the oil reserves will exceed the oil reserves of Kuwait, which is firmly among the top ten in the world. Kuwait’s proven oil reserves have now exceeded 100 billion barrels, which means that Pakistan’s newly discovered oil reserves may exceed 100 billion barrels. But according to EIA estimates by the US Energy Information Administration, Pakistan has 227 billion barrels of oil reserves, of which 900 million barrels can be exploited. Next, Pakistan has to face the difficult problem of mining.
This action has had an effect. Oil prices have begun to rise in 2009, even though the global economy was still mired in recession. Following the sharp rise in crude oil consumption in 200, OPEC was finally able to reopen the production gate as oil prices rose to the level of US$00 per barrel.
More data shows that the total number of active oil and gas wells in the United States increased to 02 in the week ending May 4. In addition, Baker Hughes stated in the report that the number of active natural gas wells in the United States increased to 96 during the week.
Of course, the geopolitical situation in the Middle East has been a major factor affecting crude oil supply in recent days. This factor has repeatedly affected WTI crude oil prices, but the main driving force for the increase is still reflected in Brent crude oil prices. Although there are reports that production cuts have encountered problems, OPEC-led production cuts are still in progress.
The low oil price makes it difficult for oil producers to maintain their balance of payments, automatically leading to a weakened willingness to increase production. Some analysts pointed out that if international oil prices continue to fall, US shale oil producers are likely to cut 209 drilling plans, resulting in a decline in US crude oil production and boosting international oil prices.
Michael Cohen also added: In the next two years, this stronger foreign policy may provide more'fuel' to the already high tensions in the Middle East, especially in Iraq, Syria and Yemen. This is especially true among Middle Eastern countries, and the hostile relationship between West Texas crude oil pricesIran and Saudi Arabia is escalating.
The United States itself is the largest consumer of gasoline, and the price of crude oil, the raw material for gasoline, is rising, so the price of the final product gasoline is bound to rise. Gasoline and diesel companies in the Middle East have government subsidies, and local demand is still high, and the impact of high oil prices has not been felt. But for many crude oil-consuming countries, such as Southeast Asian countries, now that oil prices are high, they are under greater pressure. It is under this pressure that Saudi Arabia and Russia will consider increasing production.
According to data from the General Administration of Customs on June 25, the oil imported from Russia in 208 reached 7.49 million tons, 40,000 barrels per day, an increase of 7% compared to 207, and Russia became the largest source of oil supply for the first consecutive year.
This has directly led to huge challenges in the supply of the crude oil market, which led to the formation of a pattern of rising crude oil. With the results of the OPEC meeting, China Oil.com has mentioned that although the meeting ended and the market’s worries were greatly eased, at this time It was mentioned that a new hidden danger is gradually threatening the crude oil market, and that is Trump's trade conflict.
In the past three years, global oil consumption has increased by an average of 700,000 barrels/day, which is faster than the average of 0 million barrels/day in the previous three years. Consumption growth will play an important role in regaining balance in the oil market. The key question is whether the current increase in oil prices is sufficient to promote economic growth or whether oil prices must rise further?