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

coronavirus completely.

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.