Saudi Arabia expects oil demand to increase by 600,000 barrels per...
Saudi Energy Minister Prince Abdulaziz bin Salman said that the transition from gas to oil could represent a demand of between 500,000 and 600,000 barrels per day, adding that the world is now paying attention to the shortage in the energy sector.
Prince Abdulaziz said the potential shift depends on how long the winter weather will be and the prices of alternative energy.
The prince highlighted a wide range of factors that led to the recent rise in energy prices, including limited investment in hydrocarbons and infrastructure, declining stocks, raising public isolation measures and rates of COVID-19 vaccination.
“People have suddenly woken up to the fact that they are running out of everything… They have run out of investments, they have run out of stocks and they have run out… creativity in trying to find a realistic solution that addresses the real issues,” Prince Abdulaziz told the India Energy Forum organized by Sierra Week.
The minister added that prices also jumped due to hurricanes that affected oil production and refining, and because of the “perception that we will face severe cold (in winter) that may or may not happen.” He pointed to the absence of expectations that the global economy will grow at the same speed that it is growing now.
The International Energy Agency last week revised up its forecast for global oil demand growth in 2021 and 2022, in part due to a projected 500,000 b/d increase as power generation and heavy industries shift from more expensive natural gas and coal to fuel oil and diesel fuel. .
The agency said the energy crisis could fuel inflation and slow the global recovery from the COVID-19 pandemic.
Prince Abdulaziz said that the world must pay attention to the security of energy supplies, which should not be compromised in the fight against climate change.
He added that Saudi Arabia hopes to cooperate with the European Union and Britain on green hydrogen, adding that the uncertain demand for this fuel represents the kingdom’s biggest challenge.
For his part, Sultan Al Jaber, CEO of the Abu Dhabi National Oil Company (ADNOC), said at the Indian Energy Forum organized by Cera Week, that the current energy crisis is a wake-up call to the need for more investments in the sector, in order to avoid a new crisis in energy supplies.
Meanwhile, customs data revealed yesterday that Saudi Arabia, the largest oil exporter in the world, retained its position as the most important supplier of crude to China for the tenth month in September, and increased supplies by 2 percent on an annual basis.
Saudi shipments totaled 7.96 million tons, or 1.94 million barrels per day, according to data from the General Administration of Chinese Customs. This means an increase from 1.89 million barrels per day in September last year and slightly less than 1.96 million barrels per day in August (August).
Shipments from Russia, the second-largest supplier of crude to China, fell 18 percent year-on-year to 6.14 million tons, or 1.49 million barrels per day, last month, compared with 1.59 million barrels per day in August.
The decrease in shipment volumes from the two suppliers in September comes at a time when China’s crude oil imports recorded a decline of 15.3 percent last month on an annual basis with companies consuming stocks amid an increase in international prices and with reducing import quotas, which led to a decrease in purchases.
Imports from Brazil are down 64 percent from a year ago, while they are down 83 percent from the United States. Official data consistently reveal that China has not imported any oil from Iran and Venezuela since the beginning of 2021.
Yesterday, Iraqi Oil Minister Ihsan Abdul-Jabbar expected that oil prices in the global market would rise to $100 per barrel. He said, at a ministry conference, that the first and second quarters of next year will witness a rise in oil prices to $100 per barrel.
He explained that OPEC + opposes oil prices exceeding acceptable levels and is studying ways to balance the market. He pointed out that the price of oil between $75 and $85 is an acceptable level for the price of crude in the long run.
Prince Abdulaziz said the potential shift depends on how long the winter weather will be and the prices of alternative energy.
The prince highlighted a wide range of factors that led to the recent rise in energy prices, including limited investment in hydrocarbons and infrastructure, declining stocks, raising public isolation measures and rates of COVID-19 vaccination.
“People have suddenly woken up to the fact that they are running out of everything… They have run out of investments, they have run out of stocks and they have run out… creativity in trying to find a realistic solution that addresses the real issues,” Prince Abdulaziz told the India Energy Forum organized by Sierra Week.
The minister added that prices also jumped due to hurricanes that affected oil production and refining, and because of the “perception that we will face severe cold (in winter) that may or may not happen.” He pointed to the absence of expectations that the global economy will grow at the same speed that it is growing now.
The International Energy Agency last week revised up its forecast for global oil demand growth in 2021 and 2022, in part due to a projected 500,000 b/d increase as power generation and heavy industries shift from more expensive natural gas and coal to fuel oil and diesel fuel. .
The agency said the energy crisis could fuel inflation and slow the global recovery from the COVID-19 pandemic.
Prince Abdulaziz said that the world must pay attention to the security of energy supplies, which should not be compromised in the fight against climate change.
He added that Saudi Arabia hopes to cooperate with the European Union and Britain on green hydrogen, adding that the uncertain demand for this fuel represents the kingdom’s biggest challenge.
For his part, Sultan Al Jaber, CEO of the Abu Dhabi National Oil Company (ADNOC), said at the Indian Energy Forum organized by Cera Week, that the current energy crisis is a wake-up call to the need for more investments in the sector, in order to avoid a new crisis in energy supplies.
Meanwhile, customs data revealed yesterday that Saudi Arabia, the largest oil exporter in the world, retained its position as the most important supplier of crude to China for the tenth month in September, and increased supplies by 2 percent on an annual basis.
Saudi shipments totaled 7.96 million tons, or 1.94 million barrels per day, according to data from the General Administration of Chinese Customs. This means an increase from 1.89 million barrels per day in September last year and slightly less than 1.96 million barrels per day in August (August).
Shipments from Russia, the second-largest supplier of crude to China, fell 18 percent year-on-year to 6.14 million tons, or 1.49 million barrels per day, last month, compared with 1.59 million barrels per day in August.
The decrease in shipment volumes from the two suppliers in September comes at a time when China’s crude oil imports recorded a decline of 15.3 percent last month on an annual basis with companies consuming stocks amid an increase in international prices and with reducing import quotas, which led to a decrease in purchases.
Imports from Brazil are down 64 percent from a year ago, while they are down 83 percent from the United States. Official data consistently reveal that China has not imported any oil from Iran and Venezuela since the beginning of 2021.
Yesterday, Iraqi Oil Minister Ihsan Abdul-Jabbar expected that oil prices in the global market would rise to $100 per barrel. He said, at a ministry conference, that the first and second quarters of next year will witness a rise in oil prices to $100 per barrel.
He explained that OPEC + opposes oil prices exceeding acceptable levels and is studying ways to balance the market. He pointed out that the price of oil between $75 and $85 is an acceptable level for the price of crude in the long run.
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