Bitumen price in Ethiopia
In this article, we have decided to look through the bitumen price in Ethiopia and the oil market in that region. So, stay tuned.
US effects on the bitumen price in Ethiopia
US shale oil, which accounts for 80 percent of US oil production, contributed significantly to the
2.3 percent growth of the US economy under Donald Trump. Moreover, rising stock index values, a 3.5
percent drop in unemployment, job creation and other indicators of economic growth were significantly
dependant on the rapid development of shale oil and gas resources. After the start of the oil war between Saudi Arabia and Russia on
March 6 this year, the increase in Saudi oil production, which led to a sharp drop in world oil prices, coincided
with the outbreak of the Coronavirus, which reduced the level of activity of American companies.
In 2020, they reported a 5% decline in growth. The blow to US oil producers, along with the economic crisis in
bitumen price in Ethiopia caused by the corona outbreak, not only threatens continued economic growth
and employment in the country but has also affected the three-year rise in the New York Stock Exchange index.
To counter the sharp drop in oil prices
and increase production in Saudi Arabia and Russia, the US government
and officials sought to control the market through measures, including negotiations and, at times,
pressure through tariffs on oil imports from Saudi Arabia and the withdrawal of US troops from Saudi Arabia.
That effort is still virtually fruitless, despite the holding of an emergency
OPEC Plus meeting on Thursday, April 9, and much deliberation.
With seven months to go before the US presidential election,
analysts predict that Donald Trump will run for a second term in office if he does not succeed in managing the social crisis
caused by the outbreak of the Coronavirus as the economy slows.
Needless to mention that the US presidency could be contrary to the Republicans’ promising predictions of recent months,
or at least make it very difficult for him to be re-elected.
According to official figures released last week, US demand for oil has now dropped to 14.4 million barrels per day, the lowest level since 1990,
more than a 30 percent drop from pre-crisis levels in Corona.
While Reuters surveys show that the price range for various US shale oil fields is between $ 39 and
$ 48, the price of a barrel of US crude oil (West Texas Intermediate WTI Crude Oil) traded at 26 in the global market.
Earlier, Bloomberg reported that with the end of oil storage capacity in some US shale oil fields,
the price of surplus oil has dropped below zero and producers intend to pay to persuade applicants to transport oil.
To sum up
At the same time, the latest report from the US Energy Information Administration (EIA) shows that in 2019,
the United States produced an average of 7.7 million barrels of oil per day from its shale reserves,
which is equivalent to 63% of total US oil production.