Sudan Targets Increasing Oil Production to 31 Million Barrels

Sudan Targets Increasing Oil Production to 31 Million  Barrels
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Sudan Targets Increasing Oil Production to 31 Million Barrels

Sudan Targets Increasing Oil Production to 31 Million  Barrels

 The Sudanese cabinet approved several measures aimed at raising the country’s oil production to 31 million barrels this year, with revenues reaching one billion dollars.

The government’s production of crude oil is expected to reach about 11 million barrels in 2018 and increase to 17.1 million barrels by 2020, said spokesman for the cabinet Omar Mohammed Saleh in a statement. While international oil firms produce around 20 million barrels.

Sudan has been experiencing a fuel shortage crisis for more than a month, which led to the sacking of the former oil minister and the appointment of Azhari Abdul Qader Abdullah Mahlah last week.

The minister announced on Sunday a gradual easing of the fuel crisis and a decline in waiting lines in front of gas stations.

The Gas Distribution Agents Union began distributing cooking gas especially in residential neighborhoods at a normal pace, as well as controlling the commodity to ensure its delivery to the citizens without intermediaries.

The government expects the fuel crisis to ease soon.

Head of the Gas Distribution Agents Union El Sadig El Tayeb told Asharq Al-Awsat that the crisis is on the way to being resolved following the suspension of the work of oil trucks for more than a week, earlier this month.

Sudan announced last February that its oil reserves have risen to 165 million barrels after testing the first well in the Rawat field.

The current exploration field increases the production capacity to 40,000 barrels per day due to the efforts of Sudanese workers in the field.

Production began in Rawat field years ago with a capacity of 2,500 barrels, and it is expected to rise to 7,000 barrels per day during the next phase.



Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.