MC 70 cutback bitumen
As the oil market can largely affect the bitumen demands, grades such as MC 70 cutback bitumen ,
market and prices, we have decided to explore
some latest news of the global oil market. Respectively, the increase in
US shale oil production over the past five years, besides the reduction of
US dependence on foreign oil imports, has created a new player in the
global market and snatched market share from major markets such
as Saudi Arabia and Russia.
How did US shale oil disrupt the global oil market?
The boom in shale oil, especially between 2017 and 2019,
when US oil exports were no longer restricted, somewhat thwarted efforts by
the Saudi-Russian OPEC Plus group to limit supply and boost prices. Each time OPEC Plus managed to push oil prices above $55 to $60 a barrel,
US oil producers increased their drilling activity and exploited higher prices, preventing global supply floods. Moreover, this prompted OPEC and Russia,
its major ally in OPEC Plus, to consider the US shale oil response to higher
prices when deciding on oil production policy. With policies it has
implemented over the past few years, the group has stated that despite
the temptation to make higher oil revenues due to oil prices above $60;
it is reluctant to sacrifice its market share and hand it over to shale
rivals with excessive supply constraints.
MC 70 cutback bitumen market
It is worth mentioning that the United States became the world’s largest
oil producer in 2018, surpassing Saudi Arabia and Russia,
and has maintained that position despite declining production due to the
COVID-19 pandemic. On the other hand, Saudi Arabia has restricted
production for over four years under the OPEC Plus agreement. According to
the US Energy Information Administration, the shale oil boom and the
lifting of the export ban helped boost US oil exports to about three million
barrels per day in 2019. Since late 2019, the average monthly US oil
export has exceeded three million barrels per day every month except
May and June.
How the global exports will change?
To be more specific, growth in exports helped reduce US dependence on
foreign oil compared to its peak in 2005. Additionally, it prevented oil
prices from rising during geopolitical events in the Middle East. In fact,
US oil imports fell to 6.8 million barrels per day in 2019, about a third less
than the 10.1 million barrels per day in 2005.
As you might know, the boom in US shale oil was one-reason oil prices did
not reach triple digits after the September 2019 attack on Saudi Arabia’s
oil facilities and the disruption of Saudi exports. MC 70 cutback bitumen
In other words,the growth of US oil exports also prevented the rise in oil prices after the
Trump administration imposed sanctions on Iranian oil exports in 2018
and Venezuelan oil in 2019. As a matter of fact, US oil exports now have a
good chance of gaining market share in powerful weights such as
Saudi Arabia and Russia in China. Nevertheless, the Biden administration
may impose restrictions on drilling on federal land, water,
and limit US oil resources for export to foreign markets.
China & US decisions on the global oil market
As an ultimate point, US oil exports to China tripled on an annual
basis in November as China increased oil purchases under the first phase
of the Washington-Beijing trade deal. According to Oil Price,
the American Petroleum Institute warned that about one million jobs
would be unavailable; noting that Biden’s promise to ban the leasing of
federal lands and waters to develop oil and gas resources could reverse
the decline in US oil imports. MC 70 cutback bitumen
They will disappear by 2022, and US oil imports from foreign sources may increase by
two million barrels per day by 2030.
Why is the price of oil rising in 2021?
Although the world is entering another quarantine because of an
increase in the incidence of coronavirus in some European and
Asian countries, there are significant indications that we should expect oil
prices to rise in 2021. About two months ago, when the definitive
announcement of the discovery of the corona vaccine first announced,
the price of oil rose by $3 to $8 per barrel a few hours ago,
according to the Oil Energy Group. The price increase continues at a slower
pace, despite some concerns that it will take longer to get rid of the
MC 70 cutback bitumen market
The International Energy Agency (IEA) in its new report,
although it has reduced the demand for oil to 200,000 barrels per day
compared to its previous report, but stressed that in 2021 demand will
increase to a satisfactory level. Moreover, one of the major reasons
for the confidence that oil prices will rise in the New Year seriously depends
on the political situation in the United States. The results of the
US presidential election have significant consequences for the oil market. In fact, the concentration of power in all three US powers in the hands of
Democrats will prevent oil production in the United States from rising for
at least the next four years.
Presently, although the United States can produce 13 million barrels of oil
per day, because of falling oil prices, it does not produce more than
11 million barrels per day. Given the new US government’s environmental leanings, we expect stricter oil production laws to be on the agenda,
as under former President Barack Obama.