Political economy and international relations researcher Abu Bakr El-Deeb commented on the crisis of oil refineries on the American Gulf coast with the high demand for sour oil, including the Suez Canal refineries in Egypt.
The Egyptian researcher confirmed in statements to RT that the United States of America is going through a crisis because of the OPEC Plus decisions regarding reducing production, in order to preserve prices, and this negatively affects the American economy and increases inflation rates, which is what prompts it to search for alternatives such as shale oil, sour oil and others. .
Al-Deeb pointed out that there is great competition between the American refineries and their counterparts in Egypt, especially in the east of the Suez Canal, especially after developing them and increasing their capacity.
He explained that the Egyptian refineries possess many advantages, being in the heart of the world, and close to consumer markets such as the European Union, which makes them enjoy easy trade movement, and have greater competitive advantages than their counterparts in the United States of America, indicating that from this standpoint the United States of America suffers greatly. From two sides, the first is the increase in energy, and on the other hand, the increase in investments and the capacity of ports in Egypt.
He pointed out that there are investments from the American Apache company in Egypt to expand in the Western Desert to explore for new oil resources, and this is greatly beneficial to Egypt in increasing production and increasing cash reserves.
It is noteworthy that sour oil prices are witnessing a global record rise in recent times, in light of the decline in oil production, affected by voluntary decisions taken by some member states of the OPEC + alliance recently, aimed at achieving stability in the global market.
It is likely that the increased demand for sour oil will lead to a decrease in the supply of this commodity to the crude refineries scattered on the US Gulf Coast in the coming weeks, in the wake of the voluntary cut, which entered into force starting from the month of May.
“We see demand for sour oil rising strongly globally,” said Gina Delaney, head of the crude division in North America at “Energy Aspects” consultancy.
She added, “The capacity of the new refineries that have come into operation east of the Suez Canal in Egypt will also contribute to increasing the demand for sour oil during the remainder of the current year (2023).”
Sour oil prices are witnessing a global record rise in recent times, in light of the decline in oil production, affected by voluntary decisions recently taken by some member states of the OPEC + alliance, aimed at achieving stability in the global market.
It is likely that the increased demand for sour oil will lead to a decrease in the supply of this commodity to the crude refineries scattered on the US Gulf Coast in the coming weeks, in the wake of the voluntary cut, which entered into force starting from the current month of May, according to Reuters.
This article was originally published by RT.
