*Osama Suleiman from Vienna
The report of "Oil Price" International emphasized that Saudi Aramco's intention to buy a stake in SABIC, one of the world's largest petrochemical companies, is a successful strategy for restructuring Saudi Arabia's economic base, as well as to diversifying the company's activities independently of the downstream sector, to achieve the "Vision of the Kingdom 2030."
The international report said that "this step would create an oil company has never seen before." It indicated that the impact in the form of global oil markets would be important. SABIC has long been leading the downstream sector in Saudi Arabia.
It pointed out that the continued global growth in the refining and marketing sector in Saudi Arabia and the successful acquisition of entities in Europe has led to an increase in the strength of the work of SABIC.
In a related context, crude oil prices recorded a situation of disparity as Brent crude rose and the decline of US crude following the divergence of analysts' estimates of the market situation. Many bet on the escalation of the US-Iranian conflict after the two presidents and the US intention to impose severe sanctions on Iran and any other countries that buy Iranian oil by November.
US crude fell under the oversupply of the market, especially after OPEC and its independent producer allies pumped an additional 1 million barrels to compensate for the severe shortage of Venezuela's production and frequent cuts in Libya, Canada and the North Sea.
Goran Geras, assistant director of the ZDF bank in Croatia, told the Economist, "The US-Iranian relations are heading to the escalating clash, which negatively affects the stability of the market, especially in the light of the American insistence on dropping the maximum level of sanctions on Tehran, and all buyers of Iranian oil, which threatens the stability of supply unless the major countries in the OPEC and outside of the production agree on successive productivity increases."
He said that prices are likely to rise by the end of this year, which was announced recently by Russian company "Rosneft", as well as Goldman Sachs, as their expectations are to reach the price of $ 80 barrel before the end of this year.
He pointed out that the task would be heavy on the next meeting of "OPEC" to take decisions that promote price calm.
Moreover, Vittorio Musazzi, a director of international relations at the Italian energy company "Snam," stressed to the Economist that the geopolitical factors have a wide impact in the prices of crude oil, especially at the current stage. He noted that production disruptions from Venezuela, Libya, Canada and the North Sea threaten oil supply and impose greater responsibilities on Saudi Arabia, Russia and some Gulf states to pump more than two million additional barrels. He pointed out that the return of high prices will disrupt many of the economic development programs, especially in countries that demand come from emerging economies, led by India, Indonesia, Vietnam and even China, as well as the United States as a consumer than a producer is suffering from high gasoline and stimulate producers to increase supplies.
Andre Gros, a director of the Central Asia Department of German energy company "MEMC," said, "The International Energy Agency has launched repeated calls warning of the danger of slowing investment in conventional energy, despite the high demand and the fact that it controls the energy mix in the world."
He pointed out that OPEC is working in partnership with the Energy Agency, which represents the countries of consumption and respond to the calls to calm prices in order to achieve a real balance and sustainable between supply and demand.
He said that "OPEC" despite its leadership role as the market engine, it always emphasizes the shared responsibility of all parties to the industry. As it succeeded in a collective 18-month production cut, which is now leading a similar move to gradually increase production to meet market needs without falling into the trap of supply again.
In terms of prices, oil prices varied yesterday as Brent crude recovered from earlier losses, as the market participants in their concerns split between rising tensions between the United States and Iran and signs of oversupply.
Brent crude rose 6 cents to reach $ 73.12 a barrel by 0706 GMT, after falling 1 cent on Monday.
WTI fell 3 cents to reach $ 67.86 a barrel, reversing earlier losses. The contract fell 37 cents the previous day.
In yesterday's session, the market rose after the US President, Donald Trump, warned of dire consequences for Iran if the United States threatened.
Tehran is under increasing pressure from the United States, while the Tramp administration urges countries to halt all imports of Iranian oil from November.
Saudi Arabia and top producers are increasing their supplies to offset the impact of losses likely to come as the US deadline approaches before sanctions are imposed on Tehran in November.
Meanwhile, traders said, "US crude stocks at the delivery center in Cushing, Oklahoma, increased in four days to Friday," according to data and information company "Genscape."
On a weekly basis, inventories were expected to fall in the center for the 10th week in a row, traders said.
US crude oil lost 0.5% at the end of the day, with the second loss in three days, and Brent crude fell 0.1%.
Over the past week, oil prices have lost an average of 3.5 per cent, their third weekly loss in a row, as concerns over supply overshadowed concerns in the United States.
According to a Bloomberg survey, commercial crude inventories in the United States are expected to fall by 3.1 million barrels for the week ending July 20, as well as storage center inventories in Cushing, Oklahoma, by 900,000 barrels.
The administration of US President Donald Trump continues to pressure Iran, threatening further economic sanctions if it does not abandon its nuclear program.
The latest US sanctions on Iran's oil supplies are due to take effect in November.
To meet the potential shortfall in Iran's supply, the Organization of Petroleum Exporting Countries (OPEC), together with Russia, raised output levels from July by about 1 million bpd.
Finance ministers and central bankers ended the G20 economic meeting in Buenos Aires over the weekend, as they were calling for more dialogue between economic forces to prevent trade and political tensions that harm economic growth.
"The growth of the global economy is still strong and unemployment is at its lowest level in more than 10 years, but recent growth has been reduced, with negative risks increasing in the short to medium term," the group said.
OPEC crude basket rose 71.85 dollars a barrel yesterday, compared to 71.57 dollars a barrel the previous day.
The daily report of the Organization of Petroleum Exporting Countries (OPEC) said yesterday, "The price of the basket, which includes averages of 15 prices of production of the Organization of the Organization of Petroleum Exporting Countries achieved its third consecutive increase. The basket lost about one dollar compared to the same day last week, which recorded 72.15 dollars a barrel."
