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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Riyadh 's economy raises its oil output after a Chinese "strike" on Iran

    Rocky
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    • Post n°1

    Riyadh 's economy raises its oil output after a Chinese "strike" on Iran Empty Riyadh 's economy raises its oil output after a Chinese "strike" on Iran

    Post by Rocky Sat 29 Sep 2018, 2:24 am

    [size=32]
    Riyadh 's economy raises its oil output after a Chinese "strike" on Iran[/size]
    Riyadh 's economy raises its oil output after a Chinese "strike" on Iran Ert11

     Twilight News    

     4 minutes ago



    (Reuters) - Saudi Arabia has offered a major guarantee to the world oil markets by announcing a big jump in production capacity in tandem with the impending deceleration of Iran's exports, which has received a new blow from China's Sinopec cut its purchases from Tehran by half as Russia's production peaked.
    Saudi Aramco will add a new crude oil production capacity of about 550,000 barrels per day in the fourth quarter, boosting its ability to meet market needs as US sanctions against Iranian supplies are tightened, a well-informed source said.
    The source stressed that the increase in production capacity will come at the rate of 250 thousand barrels per day from the Khurais field, which produces light crude high sulfur, raising the field's production capacity to 1.5 million barrels per day.
    He added that another 300 thousand barrels per day will come from the resumption of production from the field of Menifa giant, which pumps heavy crude high sulfur, after solving some maintenance problems.
    Analysts say the new increase in the world's largest oil production capacity will not increase overall production capacity at the declared level of 12 million bpd but will give Aramco greater flexibility in increasing supplies and reaching higher productivity levels faster than before.
    Saudi Arabia is currently pumping about 10.5 million bpd and will quietly add more crude to the market over the next two months to offset a fall in Iran's output.
    These figures confirm that Riyadh can gradually increase production by 1.5 million barrels per day, meaning that it alone can compensate most of Iran's supplies, which fell to less than two million barrels last month more than two months before the second phase of US sanctions came into force.
    Iran received a new blow yesterday, with well-informed sources saying China's state-owned Sinopec cut Iran's crude shipments this month by half after it was believed China was the last resort for Iranian exports.
    The sources said Chinese state oil companies are under intense pressure from Washington to comply with a US ban on Iranian crude, which could be used as a bargaining chip in the tough trade negotiations between Washington and Beijing.
    Supply contracts between China's largest refiner and Iran's national oil company indicate that Sinopec's shipments will fall to about 130,000 barrels per day, equivalent to half of its purchases last month and a 20 percent drop in China's total purchases from Iran compared to last year's levels.
    Although Beijing has not declared a position on the purchase of Iranian oil, it may leave government companies to choose what serves its interests as its activities are linked to the US economy and the possibility of being subject to US sanctions and fines.
    The cut represents Sinopec's biggest cut in years at a time when the state-run company listed on the New York Stock Exchange is under direct pressure from the US administration, which is determined to stifle the flow of dollar oil sales to Tehran.
    One of the sources said the move came after senior US officials visited the refineries in Beijing last month and asked for significant cuts in Iranian oil purchases. "This tour is completely different from the previous one. That time the tone was to give advice, but this time it's like a final warning. "
    Sources in the shipping and insurance sectors said that the more complicated the issue was facing Iran with difficulty in securing insurance for its oil vessels. Most of the reinsurance companies based in Europe and the United States are gradually winding down their activities with Iran.
    Chinese buyers, including Sinopec and the government-run trade company Zhuhai Zhenrong, have since July shipped their cargo to vessels owned by the Iranian National Tanker Company to maintain the flow of supplies as the United States reinforces economic sanctions on Iran.
    During the last round of UN sanctions on Iran in 2011, officials from Washington asked Chinese companies to cut their investments in Iran's oil and gas fields, but declined to demand a complete halt to oil shipments.
    Meanwhile, Reuters quoted an energy source as confirming that Russia's average oil production has risen to 11.347 million barrels per day since the beginning of this month and is heading towards a post-Soviet record.
    The data indicate that Russia is at the forefront of countries that increased production to compensate for the decline of Iranian exports, although they are a few allies of Tehran.



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