Osama Soliman from Vienna
The Organization of Petroleum Exporting Countries (OPEC) stressed that there are eight major challenges coming in the oil industry in addition to many other complex factors affecting the market, most notably climate change, energy poverty, trade disputes, geopolitical factors, declining economic growth, changing policies, escalating population growth and economic sanctions. These and other factors will continue to influence strongly over the coming days, months and years.
Producers need to be prepared for all the challenges early and be prepared to face all possibilities, said a recent report by the International Organization on the outcome of the dialogue with China in Vienna at its third session. Difficult, considering that maintaining communication channels at all times and sharing facts and data regularly reduces the impact of large bumps on the road, noting that this is the only way forward in an industry that has become increasingly interconnected over time, and no one can bear the difficulties alone.
He explained that the partnership "OPEC" and China's growing represents a situation profitable not only for both sides, but for the oil market and the global economy a whole, pointing to the words of Mohammed Barkindo, OPEC Secretary-General: "I can not stress enough the importance of our dialogue in shaping the future decisions on production as well as investment ".
The report added that the rapid development, witnessed in China over the past few decades is remarkable, a testament to the creativity of China and its hard work and determination to development.
The report said that, in order to continue to do our work well in the "OPEC", a balance between the oil market for the benefit of producers and consumers and the global economy and future development of mankind, you need industry data and statistics reliable and timely, stressing the importance of the role of China's enormous impact on global energy developments .
The report emphasizes, "We continue to stand together in a strong, has led cohesion and our determination to break the world oil market from a very dark spot, which was submerged during the recent period of recession in the oil market in the period between the years 2014-2016."
The report quoted Barkindo, that "we can determine the future of our world, including the oil industry and the global economy through our cooperation and our hard work common and we need to continue to work with patience and care with a focus on the future for future generations," noting that when we move forward we agree to continue our successful cooperation through internships, technical cooperation, and joint studies.
The report pointed to the expectations of an increase of energy demand 33 percent in the period from 2015 to 2040, pointing out that nearly 95 percent of this demand will come from Asian countries, led by India and China.
He stressed that the oil will continue to represent the largest share of the energy mix by 2040 - about 28 percent-is expected to oil and gas together constitute more than 50 percent of the world's energy needs.
The report predicted global demand growth by about 14.5 million barrels per day, up to 112 million barrels per day by 2040, pointing out that road transport will remain one of the engines the main oil demand, even taking into account the progress in efficiency and tightening emissions policies and the growth of the use of electric vehicles.
The report favored the growth of total auto stocks by about 1.1 billion between 2017 and 2040 to reach 2.4 billion vehicles, pointing out that electric vehicles will represent 13 percent of the total fleet by 2040, expected to be the largest growing oil demand from the petrochemical sector growth comes.
The report identified several important and interrelated points about how to maintain a competitive center while addressing the climate issue most notably the need for the oil industry to a seat on the table in discussions about the future of energy and yard play equal when it comes to setting energy policy, and for this reason supported the "OPEC" Paris Convention and participate fully in discussions on climate policy.
He added that "OPEC" has shown in other ways how dialogue, transparency, and cooperation are the most effective ways to deal successfully with the current challenges, citing the "Declaration of Cooperation" between 14 OPEC member countries and ten other important oil-producing countries, saying that this partnership the strategy is based on many of the values that have achieved success.
The report pointed out that OPEC estimates that an estimated $ 11 trillion in investment is needed in the industry to address the variance in demand and supply expectations, noting that market volatility, geopolitical interventions and, more recently, the discriminatory nature of policies against oil and gas are among the most damaging factors. Discourage investment in the sector.
The report quoted Bill Gates, founder of "Microsoft" as saying that the fossil fuel filter has a zero climate impact, and advises investors to support technology that helps reduce emissions, pointing out that those who want to change the world is better to put their money and energy behind technologies that slow down Carbon emissions.
The market is awaiting the launch of OPEC's annual report next month, which is expected to include positive data on supply, demand, and inventories, and the commitment of producers to conform high to the plan to reduce oil supply next year.
On the other hand, oil prices rose at the end of last week, recording its strongest weekly gain in more than a month, thanks to optimism over a US-China trade agreement, a decline in US crude stocks and a possible OPEC measure to extend production cuts, overshadowing broader economic concerns.
Prices received the most support from optimism for progress in the US-China trade negotiations, as well as positive news supporting demand from the data on the impact of declining inventories, as well as market conviction that the OPEC + alliance may deepen production cuts during their expanded meeting in Vienna during the month of December (December).
The futures rose for West Texas Intermediate crude 43 cents, equivalent to 0.8 percent for the settlement price is determined at $ 56.66 a barrel, marking a weekly increase of more than 5 percent, the strongest since 21 June, and closed Brent crude was up 35 cents or 0.6 percent at US $ 62.02 a barrel, a weekly Bmaxb more than 4 percent, is the best since 20 September.
US Energy Information Administration reported that crude stocks in the United States fell last week with the refineries to increase production, while also decreased gasoline and distillate stocks.
Increased crude stocks in the delivery point in Cushing, Oklahoma 1.5 million barrels, according to reported information management.
Crude consumption in the refineries 429 thousand barrels per day, according to the data, while refinery runs 2.1 percentage point rate increased, while gasoline inventories fell 3.1 million barrels, while analysts polled forecast to fall 2.3 million barrels.
The number of gas platforms this week has fallen by four to 133, Bloomberg News reported, citing the Baker Hughes report. The number of oil and gas extraction platforms is an early indicator of future production.
