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Petroleum Devolopments
12
Volume
44
Issue
7
1. Oil Market
1. Prices
1-1Crude Oil Prices
Weekly average price of OPEC basket increased during the first week of May 2018,
to reach $73.5/bbl, then raise thereafter, to reach its highest level of $76.3/bbl during
the third week, before decline to 73.9 during the fourth week, as shown in
figure 1
:
Petroleum Developments in the World Market and Member Countries
*
*
Prepared by the Economics Department.
Key Indicators
zz
In May 2018,
OPEC Reference Basket increased
by 8.3% or $5.7/bbl from the previous month level to stand at $74.1/
bbl.
zz
World oil demand
in May 2018,
increased
by 0.3% or 0.3 million b/d from the previous month level to reach98.6
million b/d.
zz
World oil supplies
in May 2018,
increased
by 0.9% or 0.9 million b/d from the previous month level to reach99.5
million b/d.
zz
US tight oil production
in May 2018,
increased
by 1.7% to reach about 7.1 million b/d, and
US oil rig count
increased
by 33 rig from the previous month level to stand at 931 rig.
zz
US crude oil imports
in April 2018,
increased
by 9.4% from the previous month level to reach 8.4 million b/d, whereas
US product imports decreased
by
8% to reach about 2 million b/d.
zz
OECD commercial inventories
in April 2018
decreased
by
4
million barrels from the previous month level to reach
2809 million barrels
,
and
Strategic inventories
in OECD-34, South Africa and China
decreased
by 3 million barrels
from the previous month level to reach 1852 million barrels
.
zz
The average spot price of natural gas
at the Henry Hub in May 2018
remained stable
at the same previous month
level of $2.80/million BTU.
zz
The Price of Japanese LNG imports
in April 2018
decreased
by $0.02/m BTU to reach $9.4/m BTU, the
Price of
Korean LNG decreased
by $0.1/m BTU to reach $9.3/m BTU, whereas
the Price of Chinese LNG imports remained
stable
at the same previous month level of $8.7/m BTU.
zz
Arab LNG exports to Japan, Korea and China
were about 3.527 million tons in April 2018 (a share of 29.2% of total
imports).
Figure - 1
Weekly Average Spot Price of the OPEC Basket of Crudes 2017 - 2018
($/bbl)
On monthly basis, OPEC
Reference Basket in May 2018,
averaged $74.1/bbl, representing
an increase of $5.7/bbl or 8.3%
comparing with previous month,
and an increase of $24.9/bbl or
50.6% from the same month of
previous year. Strong conformity
by OPEC and participating non-
OPEC countries in terms of
production adjustments through
the Declaration of Cooperation,
as well as escalating geopolitical
tensions, and bullish drawdowns
in US crude inventories, were
major stimulus for the increase
in oil prices during the month of
May 2018, to reach its highest
monthly value since November
2014.