Crude oil prices continued their price gains over the past week due to several concerted positive factors, most notably the US financial stimulus and hopes for a recovery in demand, in addition to the broad impact of production restrictions implemented by the "OPEC +" group, which balanced the global supply of crude oil.
The US crude achieved weekly gains of about 4.7 percent, while Brent crude rose 5.3 percent over the course of the week, amid growing confidence in the ability of the global economy to recover relatively from the repercussions of the pandemic during the current year, due to the hopes surrounding the publication of new vaccines and the impact of some statistics that show a decrease. Average new infections with the virus in many regions around the world.
In this context, a report by the International Platts Agency for Oil Information suggested that global oil consumption would witness a faster pace than the rise in absolute volumes since the 1970s over the next three years, referring to Bank of America's expectations that total demand would grow by about nine million barrels. By 2024, he added, "5.3 million barrels per day of this total will be achieved in 2021, 2.8 million barrels per day in 2022, and 1.4 million barrels per day in 2023."
The report pointed out that - for example - mobility decreased across a wide range of regions in December and January, which led to a decrease in fuel demand, and at the same time sectors such as petrochemical demand flourished due to increased use of plastics are single-use while other sectors such as jet fuel have faltered.
The report stated that in the United States, crude oil inventories have decreased by more than 17 million barrels since mid-January and are rapidly approaching their five-year average after three weeks of non-seasonal withdrawal, but expectations of European demand are still under pressure as Germany has finally expanded its closure on The country-level until next March, amid fears of the spread of new types of virus strains.
Platts expected that Canadian heavy oil producers will continue to suffer until the end of this year - at the very least - amid the escalation of environmental protests and increased political scrutiny under the new administration of US President Joe Biden.
The report stated that President Joe Biden's cancellation of the "Keystone XL" pipeline to transport heavy oil from Alberta to refineries on the American coast confused the accounts of producers and made the alternative "Line 3" project about to become a center for the fossil fuel movement in the United States, as it seeks Opponents of Biden's tendencies, to pressure to complete this line.
He pointed out that the Canadian part of the pipeline has already been completed, and it is expected that the American part will start working in the fourth quarter of this year, and there is a race against time to speed it up, noting that energy analysts say that it will be difficult to complete the Canadian-American pipeline project due to Biden's victory. And the defeat of Donald Trump, who was a staunch friend of the fossil fuel industry, pointing out that Biden completely rejected the "Keystone XL" pipeline project, while not announcing anything about the other "Line 3" pipeline.
The report added that "many American economic circles are promoting the environmental safety of the Line 3 project, and many American companies are currently moving to pump more investments in the renewable energy sector, to reach the level of zero emissions by 2050."
He pointed out that many of the expectations are towards considering 2022 the year of the expected recovery of global crude oil demand from the epidemic, noting that American companies have confirmed that they are cautious in the near term in exchange for very optimistic about the long-term basics of supply and demand.
He pointed out that due to the limited pipeline capacity outside Canada, crude oil exports by railways reached an all-time high of 411,991 barrels per day in February 2020 before falling to their lowest level in eight years at 38,867 barrels per day in July. With the spread of the epidemic, exports have since rebounded to 173,095 barrels per day in November, according to Energy Canada.
The report expected that the "Line 3" project would alleviate much of the concern about the pipeline's capacity, explaining that with the decline in heavy crude oil production in countries such as Venezuela, there is more US and foreign demand for Canadian heavy crude oil.
And crude oil futures prices rose to their highest levels in 13 months at the end of last week, with improved expectations for oil demand amid indications of progress in the distribution of Corona vaccines in the United States, in addition to the financial stimulus package to counter the repercussions of the Coronavirus.
An interview with the agency explained that US President Joe Biden recently announced that the United States had concluded deals to purchase 200 million additional vaccines for the Coronavirus from Pfizer and Moderna, which reinforces optimism that the rapid introduction of heavy doses will lead to a strong recovery in oil demand in the second half of the year. Ongoing.
And international analysts were quoted as confirming that the demand forecast for crude oil could get its best scenario, as Americans who want the Corona vaccine will be able to obtain it by next April.
He noted that the US President's bill for relief from the Coronavirus of $ 1.9 trillion continued to progress through Congress, as the House Roads and Transportation Committee approved a $ 940 billion portion of the package that included a third round of direct relief payments totaling $ 1,400 per person.
On the other hand, concerning prices at the end of last week, oil prices rose more than 2 percent on Friday, recording their highest levels in more than a year, thanks to hopes that the stimulus of Americans will boost the economy and demand for fuel and in light of the scarcity of supplies, which is largely due to Big Producer Discounts.
Brent crude rose $ 1.29, equivalent to 2.1 percent, to determine the settlement price at $ 62.43 a barrel, after rising during the session to $ 62.83, its highest level since January 22, 2020.
US crude closed up $ 1.23, or 2.1 percent, at $ 59.47, after rising to $ 59.82, its peak since January 9, 2020. US crude snatched weekly gains of 4.7 percent, while Brent rose 5.3 percent, all the week.
US President Joe Biden will hold a meeting with a group of mayors and state governors from the Republican and Democratic parties, as part of his efforts to approve a $ 1.9 trillion relief plan from the repercussions of the Coronavirus to support economic growth and help millions of unemployed.
The three major US stock indices are heading for gains for the second week in a row. Hopes that life will eventually return to normal have been boosted thanks to a sharp decline in Covid-19 infections and the number of hospital inmates.