Gilsonite
As it appears, this article is about Gilsonite. Therefore, we have brought events that have influenced the Gilsonite market and price. So, stay with us to the end of this article,
and you will receive much useful information on Gilsonite.
OPEC oil production
It is not possible to accelerate OPEC oil production. “The Organization of
the Petroleum Exporting Countries (OPEC) should not rush to increase
production early next year, as energy demand remains weak as the
coronavirus continues to spread around the world,” Abdul Majid Attar quoted
as saying by Bloomberg. Algeria’s energy minister, who chaired OPEC in 2020,
said there was no guarantee that the coalition of OPEC and its allies
(OPEC Plus) would cut oil supplies by 2 million barrels by April,
even after this month agreed to increase production gradually.
Gilsonite market
The price of Brent crude oil has risen over 33% since the beginning
of November, following the announcement of the production of corona
vaccines, and has reached $50 per barrel. However, the price of
Brent crude oil has decreased by 24% compared to last year. As corona disease increases in the United States and quarantines intensify in parts of Europe,
OPEC in its December report released on Monday (December 24)
raised its forecast for global fuel consumption in the first three months of
2021 to 1 million barrels per day. Despite some differences between some
OPEC countries over production cuts, Attar believes that OPEC will move
towards 2021 as a whole. “I think the crisis we have experienced this year
has strengthened cooperation,” he said. I believe we have created a
sustainable and long-term framework for cooperation, he also added.
What affects the Gilsonite market?
It’s important to know that Attar praised Russia’s reduction in production,
despite Moscow’s failure to comply with its production quota in the OPEC
Plus production cut agreement. He added: “We are very glad about the help of
all non-OPEC countries, especially Russia.” Moscow’s share of the
agreement since May 2020 has been 95 to 98 percent. This figure is very satisfactory for Gilsonite market. In fact, the chairperson of the OPEC
presidency expects energy demand to increase in the second half of 2021. Attar said that the new financial support for the economy and the prospect of
rapid and widespread injection of vaccines would be a good omen
for the Gilsonite and oil market. Moreover, Algeria has set its 2021 budget
at $45 a barrel, and the state-owned Sonatrach Oil and Gas Company
estimates oil and Gilsonite prices at $40- $50 in the medium term.
China will be the world’s largest economic power by 2028
According to Reuters, the latest research conducted by the
British Center for Economic and Trade Studies (CEBR) suggests that
China will become the world’s leading economic power by 2028,
surpassing the United States. In this way, China’s economic superiority
will be obvious five years earlier than expected, which results from
Beijing’s better performance in controlling COVID-19. Generally,
China’s economic growth is about to be 5.7 percent annually between 2021
and 2025 and to 4.5 percent between 2026 and 2030. Between 2022 and
2024, US annual economic growth will decline to 1.9 percent,
while after this period; they estimate it at 1.6 percent per year.
Gilsonite market in Japan
But ,Japan will remain the world’s third-largest economy until the early 2030s
when it will cede its position to India. In this way, they will reduce Germany
from the fourth economic position to the fifth. Additionally, Britain,
which is currently the fifth-largest economy in the world, will fall to sixth
place by 2024. Environmental issues are also about to have a significant
impact on the shape of the world economy over the next 15 years as the
effects of global warming will be faster. To be more specific,
adherence to environmental issues can lead to reduced demand for
fossil fuels and, lower oil prices.
China’s economy grew by 8% and returned to pre-pandemic levels
The World Bank said in a new report that China’s economic growth
would increase from 2.2 percent in 2020 to 7.9 percent next year. In fact,
the report predicts that China’s economy will return to pre-pandemic
levels in 2021 as corporate confidence builds, consumer demand strengthens
and labor market conditions improve. The World Bank said that while
we did not change our forecast for China’s economic growth from the
previous forecast for the summer, it worth mentioning that China
needs to manage some of its ambiguous economic conditions shortly. China can use its fiscal space to
counter downside risks and replace public demand with private
demand, along with flexible policymaking, advocacy and flexibility.
Gilsonite market & China
It’s worth noting that China has lifted restrictions on foreign
investment in its energy. To be more specific, in a recently released
document, the Chinese government has lifted restrictions on foreign
investment in the energy sector, including fossil fuels,
renewable energy and electricity generation, with the exception of
the nuclear sector. Specifically, named “Energy in China’s New Age,
” the document expanded foreign investor access to the Chinese market,
boosted private sector investment, and diversified investment institutions.
The document also addresses other important changes, such as changes to
the oil and gas exploration law, the operation of energy transmission
pipelines, and the dynamic management of oil and gas imports. Thus,
China seems to be increasing its international cooperation in energy
exchange and related financial transactions. Finally, last year,
the Chinese government opened its energy exploration market to
foreign investors, announcing that foreign companies no longer
needed to co-invest with a Chinese company.