Bitumen exporter

In this article, we will discover all the factors that are responsible for the changes that happen for bitumen exporter. The first item is China’s trade deal that has boosted oil prices in the market. This is the first variable that affects bitumen exporter.

China’s trade deal affecting bitumen exporter’s situation

According to news, Brent oil for January delivery rose 44 cents,

or 1 percent, to $ 43.22 a barrel. On the other hand, West Texas Intermediate for December delivery rose 54 cents,

or 1.4 percent, to $ 40.67 a barrel. Statistics showing the recovery of China and Japan –

the world’s second and third largest economies – as well as oil refining statistics at Chinese refineries,

which had record growth in October, supported price growth.

“Fundamental Chinese statistics support oil prices,”

said Hove Lee, an economist at OCBC Bank. Both indices rose more than 8% last week due to the promising results of Pfizer and

BioNec 19 vaccines and the possibility of delaying the planned increase in OPEC Plus production. Needless to mention that OPEC Plus currently limits production to

7.7 million barrels per day but plans to increase production to about two million barrels per day from January. Besides, the group adhered to the production cut agreement in October at 101 percent. Additionally, OPEC Plus plans to hold a

ministerial committee meeting to advise group ministers not to change production quotas.

Revival of Libyan oil production

Worthful to mention that the revival of Libyan oil production,

which is a member of OPEC and has reached over 1.2 million barrels per day, is a challenge for the OPEC Plus production reduction program. A new wave of Covid 19 in the

United States and Europe has also dampened hopes of improving fuel demand this winter affecting bitumen exporter situations.

According to analysts at ANZ Banking Group, European highway traffic has dropped by

almost 50 percent in recent weeks in some countries due to quarantine measures. US highway traffic has also declined, despite officials’ reluctance to enforce the new restrictions.Furthermore, the surplus of oil supply in the first half of next year

will be between 1.5 and three million barrels per day. According to Reuters, while demand for fuel has slowed,

Baker Hughes’ statistics showed that the number of US oil and gas rigs reached its highest level since May last week,

indicating an increase in US production in the coming months.

The price of a barrel of oil reached $ 44 with the news of the modern vaccine

Another factor that will change the situation of a bitumen exporter,

is the oil price that has changed due to the discovery of a vaccine. As mentioned above, the price of a barrel of Brent oil reached $ 44 with the news of the discovery of the modern vaccine with 95% success. Oil prices rose in hopes of

OPEC Plus extending the production cut agreement for at least another three months,

as well as promising news of a new vaccine, Reuters reported.To be more specific, Brent crude

traded up 16 cents at $ 43.98 a barrel and US crude was up 8 cents at $ 41.42 a barrel.

After the news of the 94.5% effectiveness of the modern vaccine of Moderna Company,

the stock markets strengthened in the hope of better economic recovery.”The announcement of the modern company has probably had the biggest impact on oil and bitumen exporter,

” said Jeffrey Halley, an oil market analyst. He added that the positive news of the vaccine

“will almost certainly create a long-term price floor for oil prices.”

High success of the vaccine

In fact, the results of the Moderna vaccine were released a week after the results of the Pfizer vaccine,

which announced that the vaccine was 90% effective.OPEC Plus member states are also meeting at the ministerial level,

proposing changes to the production quota until all ministers meet at the November 30-December 30 meeting. According to sources familiar with Reuters, the group intends to postpone

the increase in production in January for at least three months in order to boost prices and the situation of bitumen exporter.

Gold, the UAE’s largest oil trade in the first half of 2020

Another factor that is responsible for bitumen exporter changes,

is the fact that Gold became the UAE’s largest oil trade in the first half of 2020.

Official statistics from the United Arab Emirates show that the gold trade worth 104 billion dirhams,

equivalent to 15.7% of total trade, was the largest non-oil trade in the country in the first half of 2020. As we have mentioned, the UAE Federal Bureau of Statistics

and Competition said the country’s non-oil trade reached 658.3 billion dirhams ($ 179.2 billion) in the first half of 2020.

Moreover, the value of the country’s imports in the first half of this year was 378.8 billion dirhams

and its exports were 116.7 billion dirhams.According to Bloomberg, China was the UAE’s largest trading partner,

with trade value between the two countries reaching 82.4 billion dirhams, followed by Saudi Arabia, India and the United States.

Aramco’s negotiations to buy a 20% stake in the multinational company Bitumen exporter


Another factor is the negotiations of Aramco on buying a 20% stake of a company. This fact changes the situation for bitumen exporter and the bitumen market. Aramco, the world’s largest oil company,

has resumed talks to buy a 20 percent stake in a multinational oil and chemical company.

To be more specific, Reliance Industrial Group and Aramco have resumed talks to trade a 20

percent stake in the India-based multinational cluster, which is active in converting oil to chemicals,

according to the Economic Times.It’s good to know that these negotiations were temporarily

suspended due to the corona.According to the report, both companies intend to make the deal,

and Aramco wants to conduct a face-to-face inspection of Reliance assets in India.

The chairman of Reliance and Asia’s richest man told shareholders in July that the deal delayed

due to unforeseen conditions in the energy market and the state of the corona. In August 2019,

the initial deadline for completing the deal was for March 2020.

Respectively, Reliance reported in October that profit for the three months to September

had fallen 15 percent because of problems caused by the corona. Of course, the revenue of telecommunications services of Geo, which is owned by Reliance,

had experienced double-digit growth.

As reports show, Reliance has asked investors to contribute to the company’s

retail business and raised about $ 20 billion in global investment from global investors this

year by selling its Geo Platform digital business share. To sum up, these items in this article,

are all responsible for bitumen exporter’s conditions, oil and bitumen market.