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38
Volume
44
Issue
1
1. Oil Market
1. Prices
1-1Crude Oil Prices
Weekly average price of OPEC basket increased during the first week of
November 2017, to reach its highest level of $61.7/bbl, then decline to reach
$60.3/bbl during the second week, and raise thereafter to reach $61.4/bbl
during the fourth week, as shown in
figure 1
:
Petroleum Developments in the World Market and Member Countries
*
*
Prepared by the Economics Department.
Key Indicators
zz
In November 2017,
OPEC Reference Basket increased
by 9.4% or $5.2/bbl from the previous month level
to stand at $60.7/bbl.
zz
World oil demand
in November 2017,
decreased
by 0.4% or 0.4 million b/d from the previous month level
to reach98.6 million b/d.
zz
World oil supplies
in November 2017,
increased
by 1.3% or 1.3 million b/d from the previous month level
to reach99.6 million b/d.
zz
US tight oil production
in November 2017,
increased
by 1.6% to reach about 6.2 million b/d, whereas
US
oil rig count decreased
by 6 rig from the previous month level to stand at 791 rig.
zz
US crude oil imports
in October 2017,
increased
by 8.1% from the previous month level to reach 7.7
million b/d, whereas
US product imports decreased
by
13.8% to reach about 2 million b/d.
zz
OECD commercial inventories
in October 2017
decreased
by
40
million barrels from the previous
month level to reach 2940 million barrels
,
and
Strategic inventories
in OECD-34, South Africa and China
decreased
by
4
million barrels from the previous month level to reach 1854 million barrels
,
zz
The average spot price of natural gas
at the Henry Hub in November 2017
increased
by $0.13/million
BTU comparing with the previous month level to reach $3.01/million BTU.
zz
The Price of Japanese LNG imports
in October 2017
decreased
by $0.3/m BTU to reach $7.8/m BTU,
whereas the
Price of Chinese LNG imports increased
by $0.26/m BTU to reach $7.4/m BTU, and
the Price
of Korean LNG imports remained stable
at the same previous month level of $8.1/m BTU.
zz
Arab LNG exports to Japan, Korea and China
were about 3.083 million tons in October 2017 (a share of
24.7% of total imports).
Figure - 1
Weekly Average Spot Price of the OPEC Basket of Crudes 2016 - 2017
($/bbl)
On monthly basis, OPEC
Reference Basket in November
2017, averaged $60.7/bbl, the
highest level since June 2015,
representing an increase of
$5.2/bbl or 9.4% comparing
with previous month, and
an increase of $17.5/bbl or
40.5% from the same month
of previous year. Continuing
bullish oil market fundamentals
and optimism that OPEC and
non-OPEC would extend the
Declaration of Cooperation
through next year 2018, as
well as the supply outages with
regard to Canadian exports
to the US, and US oil stocks
decline, were major stimulus
for the increase in oil prices
during the month of November
2017.