China buys our oil and that could be the worst nightmare of Iran. It seems that the Chinese trade negotiations did not lead to anything, but despite that fact, China's demand for US crude oil could rise anyway. According to Reuters, "Unipec will resume US crude oil purchases in China in October after a two-month stop due to the trade dispute between the world's two largest economies."
This news, along with reports that talks between the French oil refinery Total and employees on three of its oil and gas platforms in the North Sea have failed, which means that a series of planned strikes will occur, raises concerns about tightening global supply and sending oil rising. This comes on a day when oil traders are waiting for the harness, news about the debut address central bankers of Federal Reserve Chairman Jerome Powell at Jackson Hole Wyoming and the weekend. The decline in the dollar also helps oil and if Powell sounds the least stupid, we can see a big increase in oil to end the week.
Reuters reports that oil production will stop in the North Sea when the attacks take place. The three fields of combined oil production contribute approximately 45,000 to 50,000 barrels per day (bpd) to the North Sea's Forties and raw Brent streams.
The China-US. trade negotiations ended without much news to focus on. Bloomberg reported that the White House said in a statement that the countries "exchanged views on how fairness, balance and reciprocity in the economic relationship can be achieved, also by addressing structural problems in China", identified by the US in a research into Chinese IP practices. The two nations had "constructive, frank" communication and will keep in touch about the next steps, said the Chinese Ministry of Commerce in a statement released Friday.
Yet it is clear that despite the reports from China that the United States charges, the big players are going to buy American oil. Many thought that China would replace the American oil with Iranian oil, but now it seems that Iran's best customer will use the American oil as leverage to get discounted Iranian oil. It is also a sign that Chinese demand for oil is not slowing as much as some people have thought. Reuters writes that the decision to buy crude oil again comes from the United States after Beijing, earlier in August, has removed it from the list of import tariffs. A well-informed source said that Unipec "is going to buy American crude oil, loaded in October, after the change in Beijing's policy." This news supports oil.
Oil is approaching with oil strikes and American refining needs. Because the maintenance season of the United States shows strong signs of slowing down, it is clear that the normal decline in rough demand may not be as great as in recent years. While oil products see a counter-season increase, it is clear from the tear-offs that the market signals that the demand for oil products will remain strong.
Canada has benefited from the record needs of US refineries. The UPI reports that a Canadian energy regulator reported that the average daily amount of crude oil exported by rail almost doubled compared to the previous year. Canada indicates almost all oil exports to the United States. For the last week of June, US federal data show that exports from Canada to the United States increased 11.8 percent from the same period last year. The moving average of four weeks for that week was 12.2% higher on an annual basis.
Market Watch reported that the US Energy Information Administration reported Thursday that its domestic natural gas supply rose by 48 billion cubic feet for the week ending August 17. The market consensus had called for an increase in the range from 50 billion to 55 billion cubic feet, according to the five-yearly average for this time of the year, according to Schneider Electric. Total inventories are now at 2,435 trillion cubic feet, down from 684 billion cubic feet from a year ago, and 599 billion below the five-year average, the government said. September NGU18 natural gas, + 0.47% was half a cent higher, or 0.2%, at $ 2,961 per million British thermal units, an increase of $ 2,943 before the feed data.