A specialized report said that oil prices moved within a limited range during the month of February, but it ended the month’s trading on a decline in light of fears that central banks will continue monetary tightening policies, which negatively affected sentiment at a greater pace than the potential positive impact of the increase in global demand for oil after the restoration of oil prices. Opening China to its economy.
The price of Brent crude ended the month’s trading at $83.9 a barrel -0.7% on a monthly basis, -2.4% since the beginning of the year, marking the second consecutive month of decline, while the local index, Kuwaiti export crude, which is mainly marketed in Asia, ended. Trading for the month was at $83 a barrel, +0.6% on a monthly basis, and +1.2% since the beginning of the year.
In Kuwait, the NBK report said that oil production increased marginally in January to 2.69 million barrels per day + 45 thousand barrels per day on a monthly basis, “a level slightly above the established quota of 2.67, a compliance rate of 87%,” according to secondary OPEC sources.
The report indicated that the CEO of the Kuwait Petroleum Corporation, Sheikh Nawaf Saud Al-Sabah, announced plans to invest $80 billion over the next five years, in line with the corporation’s long-term expansion plans.
It seems that the huge investments directed to the refining, manufacturing and marketing industries, amounting to about $30 billion, in the two environmental fuel projects and the new Al-Zour refinery, which have begun to bear fruit, as Kuwait has boosted its exports of diesel and low-sulfur fuel oil with European specifications from its refineries to reduce the shortage of distillate supplies in the eurozone.
NBK stated, “Kuwait exported 123,000 barrels per day of refined products to Europe in December, +81% on an annual basis.”
Sheikh Nawaf believes that diesel shipments to Europe will more than double, to reach 2 million tons + 41 thousand barrels per day »in 2023.
Returning to the oil markets during the month of February, the NBK stated, “Prices were subject to conflicting indicators between decline and rise, as the markets’ concerns increased about continuing the interest rate hike cycle at a higher pace and for a longer period after the issuance of strong US economic data, while the continued build-up of crude stocks indicated US demand weakened at a higher-than-expected pace.
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