After the cost of crude oil prices increased by seven years in October, Brent's cost has changed somewhere in the range of 70 and 85 US $ / bbl. As fears about the seriousness of the Omicron variant diminishment, the cost of non-processing begins to rise again, reaching more than 80 US $ / bbl by January 2022.
Interest is still growing (+2,5 MMB / d from Q2 to Q3) and better than the increase in creativity. The gap between application and creativity reached 1.4 MMB / d by Q3 2021. The rotating rig covers continued to grow steadily by 2021 to 1563 in December. However, it remains significantly lower than pre-Cocid levels (2019).
The economy continues to recover from the Covid sway and interest rates on oil-based assets are rising. With the Omicron variant, Kerosene will be in danger if the country's borders are closed, thus having an impact on the aviation sector.
OPEC + is continuing its approach and will build its 0.4 Mb / d creation, which has been in use since last August. OPEC + then decided to be vigilant and stopped before perhaps exploring its approach by increasing its creation. It will continue to monitor the market closely and make changes given the growth of the epidemic.
A general change in the balance of the stock application is expected in Q1 2022.
The cost of a high rough pattern is negligible and the fate of the upward market remains bright.
Supported by OPEC + strategy, cold temperatures, and long-term investment pattern, oil costs re-emerged in early autumn and reached record levels with Brent and WTI over 80 $ / bbl.
This cost-cutting pattern has encouraged American shale oil producers to grow the environment: The Permian vessel is expected to return to pre-Covid levels of 4.9 million barrels daily by mid-2022. Indeed, as shale containers have come a long way in their high-end creation, manufacturers can increase yields without throwing costs down and frustrating OPEC + standards. The American shale situation has since changed recently with many changing from state-owned companies to private executives. Following the Covid epidemic, public executives have placed payments to banks and investors as a matter of concern while private-owned enterprises are regularly backed by private values that look to build development to enhance service reputation. In any case, since the efficiency of a private space is less than that of a public place, the result will not be very different. Currently, shale creation is done on all accounts in line with OPEC + interests to match the cost at a certain level.
Against this backdrop, the US agency was warning of high unpaid customer costs and demanding flooding. As the request remains unanswered by American whalers and the OPEC + team, government officials, in a joint effort with China, Japan, South Korea, and the UK, have decided to reduce 50 million barrels of raw petroleum in essential stores. In any case, the announcement of this unequal record release could not determine how to address the costly cost pattern. Global integration with OPEC + and America's recovery will be two key factors in reducing costs.
However, this return to power use was weak, depending on the progress of coronavirus cases worldwide. Emerging variants of Omicron have reduced oil costs. In any case, this declining pattern was short and the cost has been high since the end of December.
Next, we see that oil costs are not stable; the uncertain weather ceases to meet the exact expectations and the next few months will try any different partners.
Rising interest rates on fossil fuels (SAF)
In December 2021, another milestone was reached when United Airlines became the largest airline in history to operate a passenger plane using 100 percent active flying fuel. It shows the avionics' desire to remove carbon from their place.
On July 14, 2021, the European Commission (EC)
A few oil associations have chosen to plant plants or change their current treatment environment to form SAF. As an example, Shell plans to generate an estimated 2 million tons each time by SAF by 2025. The majors now add 820,000 tons annually to the biofuels industry in Rotterdam, the Netherlands, and could build 550,000 tons of biofuels a year in Singapore. to meet the growing local demand for economically viable aircraft (SAF). The number of non-combustible diesel projects with SAF continues to rise.
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| Oil market trend analysis: despite Omicron, the oil market remains optimistic |