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Petroleum Devolopments
16
Volume
44
Issue
3
1. Oil Market
1. Prices
1-1Crude Oil Prices
Weekly average price of OPEC basket increased during the first week of January
2018, to $65.5/bbl, and continued to raise thereafter, to reach its highest level of
$67.6/bbl during the fourth week, as shown in
figure 1
:
On monthly basis, OPEC Reference Basket in January 2018, averaged $66.9/bbl,
the highest level since November 2014, representing an increase of $4.8/bbl or
7.7% comparing with previous month, and an increase of $14.5/bbl or 27.6% from
Petroleum Developments in the World Market and Member Countries
*
*
Prepared by the Economics Department.
Key Indicators
zz
In January 2018,
OPEC Reference Basket increased
by 7.7% or $4.8/bbl from the previous month level
to stand at $66.9/bbl.
zz
World oil demand
in January 2018,
decreased
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 January 2018,
increased
by 0.1% or 0.1 million b/d from the previous month level
to reach99.2 million b/d.
zz
US tight oil production
in January 2018,
increased
by 3.1% to reach about 6.5 million b/d, and
US oil
rig count
increased
by 9 rig from the previous month level to stand at 820 rig.
zz
US crude oil imports
in December 2017,
increased
by 2.2% from the previous month level to reach 7.8
million b/d, and
US product imports increased
by
10.5% to reach about 2.2 million b/d.
zz
OECD commercial inventories
in December 2017
decreased
by
56
million barrels from the previous
month level to reach 2850 million barrels
, whereas
Strategic inventories
in OECD-34, South Africa and
China
increased
by
2
million barrels from the previous month level to reach 1847 million barrels
,
zz
The average spot price of natural gas
at the Henry Hub in January 2018
increased
by $0.9/million BTU
comparing with the previous month level to reach $3.69/million BTU.
zz
The Price of Japanese LNG imports
in December 2017
increased
by $0.2/m BTU to reach $8.1/m BTU,
the
Price of Chinese LNG imports increased
by $0.4/m BTU to reach $8.1/m BTU, and
the Price of
Korean LNG increased
by $0.6/m BTU to reach $8.3/m BTU,
zz
Arab LNG exports to Japan, Korea and China
were about 4.188 million tons in December 2017 (a share
of 24.4% of total imports).
Figure - 1
Weekly Average Spot Price of the OPEC Basket of Crudes 2017 - 2018
($/bbl)
the same month of previous
year. Wide-ranging support
from production adjustments
under the Declaration of
Cooperation between OPEC
and non-OPEC through year
2018, as well as weaker US
dollar, geopolitical tensions,
improving oil demand, and
World oil stocks decline
(specially Us crude oil
inventories which decline to
its lowest level since February
2015), were major stimulus
for the increase in oil prices
during the month of January
2018.