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For reasons related to global supply concerns..
Report by Al-Attiyah: Oil prices are making gains for the fourth week
July 23, 2023, 07:00am
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global suppliesAl-Attiyah Energy CorporationoilRussia and Ukraine
Doha – East
The weekly report issued by Al-Attiyah Energy Corporation said: Oil prices rose by about 2% on Friday, achieving a fourth consecutive weekly gain, supported by increasing evidence of supply shortages in the coming months and escalating tensions between Russia and Ukraine that may hit supplies more. Brent crude oil prices rose by $1.43, or 1.8%, to reach $81.07 a barrel, achieving a weekly gain of about 1.2%. US West Texas Intermediate crude futures rose $1.42, or 1.9%, to $77.07 a barrel, its highest level since April 25. West Texas Intermediate crude increased nearly 2% in a week. While Russia struck Ukrainian food export facilities for the fourth consecutive day on Friday and conducted exercises to seize ships in the Black Sea, in an escalation of tensions in the region since Moscow’s withdrawal last week from a UN-brokered safe passage agreement. The closure of the grain corridor could affect supplies of ethanol and biofuels that are blended with oil products at a time when global grain markets are already under pressure, which could lead refiners to use more crude oil. In the United States, crude oil inventories fell last week, amid a jump in crude oil exports and an increase in refinery utilization. This, the Energy Information Administration predicted on Monday that shale oil and gas production in the United States is likely to decline in August for the first time this year, which would increase concerns about supply shortages.
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LNG prices in Asia stabilized last week, as buyers continued to focus on early winter shipments with limited late-summer supply needs. Prices were affected due to high gas stocks in Europe. The average LNG price for September delivery to Northeast Asia came in at $10.80 per million British thermal units, unchanged from the previous week, industry sources estimated. In Japan, storage capacity was 2.10 million tons, slightly above the five-year average, but below its level for this time in 2021 and 2022, which could lead to continued demand increase in the near future.
In Europe, supplies of LNG and Norwegian gas have stabilized, causing weak demand for energy. This is also due to the recovery of European gas storage sites that have recently been filled by 82.5%, according to Gas Infrastructure Europe, which means that Europe is heading well towards achieving the goal of filling its stocks of LNG by 90% by November 1. In the US, natural gas prices fell nearly 2% on Friday as expectations of lower demand next week than previously expected offset lower daily production amid warmer-than-normal temperatures through early August, particularly in Texas and California.
