Baghdad News –
CAIRO, Kuwait (Reuters)
Oil prices rose more than $ 52 a barrel yesterday, ahead of a weekly report on US oil inventories, which is expected to show a drop for the sixth week, but doubts about compliance with the agreement cut OPEC production led by OPEC cut the gains.
The US Petroleum Institute confirmed earlier in the day that crude stocks in the United States fell more-than-expected last week as imports declined and crude oil consumption in refineries rose, while gasoline inventories unexpectedly increased.
Crude stocks fell 7.8 million barrels last week to 478.4 million barrels, while analysts expected a 2.7 million barrel drop. Global Brent crude <LCOc1> rose 34 cents to $ 52.48 a barrel after falling for two days. US WTI rose 30 cents to $ 49.47 a barrel.
A source in the oil sector said that Kuwait raised the official sale price of crude oil in shipments to Asia in September by five cents a barrel a month earlier.Kuwait will sell its oil to Asian customers at a discount of $ 1.40 a barrel from the average price of the Oman and Dubai crude futures next month, compared to a discount of $ 1.45 a barrel in August.
In a separate context, Egyptian Oil Minister Tariq Al-Mulla said foreign oil companies’ investments in his country rose to $ 8.1 billion in fiscal year 2016-2017 from $ 6.6 billion in the previous fiscal year. These figures mean that foreign oil companies’ investments in Egypt increased by 22.7 percent during the fiscal year 2016-2017, which ended on June 30.
“Foreign partners spent $ 8.1 billion on exploration, exploration and development in Egypt in 2016-2017, compared to $ 6.6 billion in 2015-2016,” Mulla told Reuters by telephone. During the second half of the year, Egypt paid about $ 2.2 billion of foreign oil companies’ entitlements, prompting it to increase investments and accelerate the development of the Enron field of Italy’s Eni to start producing about one billion cubic feet of gas per year before the end of the year.
It has reserves of about 30 trillion cubic feet of gas. Egypt expects to exceed $ 10 billion in investments by foreign oil companies in the current fiscal year.
These companies’ dues amounted to $ 2.3 billion at the end of June, according to Mala. Among the foreign companies operating in oil and gas exploration and production activities in Egypt are BP, Shell, Dutch and Eni.
“Companies are pumping investments into the oil sector and recovering the money they have spent by getting a percentage of production from oil and gas fields,” said officials of foreign companies operating in Egypt.