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 Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.