Political economy and international relations scholar Abu Bakr El-Deeb commented on the crisis of oil refineries on the American Gulf coast with high demand for sour oil, including the Suez Canal refinery in Egypt.
The Egyptian researcher confirmed in RT statements that the United States of America is in crisis due to OPEC Plus decisions to cut production in order to maintain prices, and this negatively affects the American economy and increases inflation, which pushes him to look for alternatives such as shale oil, sour oil and others.
Al-Deeb noted that there is a lot of competition between US refineries and their counterparts in Egypt, especially in the east of the Suez Canal, especially after their development and increase in their capacity.
He explained that Egyptian refineries have many advantages as they are located in the heart of the world and are close to consumer markets such as the European Union, allowing them to trade easily and have a greater competitive edge than their counterparts in the United States of America. America, pointing out that from this point of view, the United States of America suffers greatly. On two sides, the first is the increase in energy, and on the other hand, the increase in investment and port capacity in Egypt.
He pointed out that there is investment in Egypt by the American company Apache to expand in the Western Desert to explore for new oil resources, and this is very beneficial for Egypt in terms of increasing production and increasing cash reserves.
It is noteworthy that sour oil prices are experiencing a world record in recent times in light of the decline in oil production, which was influenced by voluntary decisions taken recently by some members of the OPEC+ alliance aimed at achieving stability in the global market. .
It is likely that increased demand for sour crude will lead to a reduction in the supply of this commodity to refineries scattered along the US Gulf Coast in the coming weeks after a voluntary cut that took effect from May.
“We see demand for sour crude around the world growing strongly,” said Gina Delaney, head of crude oil in North America at consultancy Energy Aspects.
She added: “The capacity of the new refineries coming online east of the Suez Canal in Egypt will also help boost demand for sour crude over the remainder of this year (2023).”
High-sulfur oil prices are experiencing a world record in recent times in light of the decline in oil production, which was affected by voluntary decisions recently taken by some members of the OPEC+ alliance aimed at achieving global market stability.
It is likely that higher demand for sour crude will cut supplies of the commodity to refineries dotted along the U.S. Gulf Coast in the coming weeks after a voluntary cut that took effect from the current month of May, according to Reuters.
Source: RT
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