Oil Prices Reach Pre-Pandemic FiguresBy Miriam Bello | Thu, 02/11/2021 - 17:28
After 11 troubling months, oil prices are back on track. With a stable nine-day increase, this has been the longest time in two years that prices have remained on the rise.
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According to Business Today, compared to 2020, Brent’s highest peak was at US$59.04/b. As for WTI, it experienced a 0.97 percent increase, reaching its highest 2021 peak on Wednesday at US$55.69/b. The reasons for this seem to be many, the first one being OPEC+ members’ agreement on output cuts. This is also tied to the US crude supply drop, coupled with the COVID-19 vaccine optimism, as it has kept prices increasing in the past couple months.
The Ministry of Finance and Public Credit will reactive a fiscal stimulus to subsidize the IEPS quota. The subsidy will be of MX$2.79 (US$0.14) per liter. Prior to the pandemic, this subsidy was an ongoing reality for Mexico although it stopped being necessary when global prices hit a history low.
Shell has been reducing its carbon emissions significantly since 2018. However, according to the company, it hopes to further align with the Paris Agreement. The company is betting on biofuels and hydrogen energies to keep the business growing and reaching its carbon free goal.
As part of its divestment plan, Petobras has sold the first of the eight refineries it plans to let go. The refinery has a 333,000-barrel processing capacity per day, which represents 14 percent of Brazil’s total oil refining capacity. The purchase was completed by Mubadala Capital, a UAE company, at US$1.65 billion.
MBN posted an article on the Marinsa case following accusations of bankruptcy. Several accusations of fraudulent contracts are arising following the bankruptcy announcement. Marinsa has not made any recent comment on the accusations.
Developing oil in Mexico has been a hot topic since the arrival of the new administration. After the COVID-19 pandemic, the scenario has become even more complicated. Read MBN’s expert opinion from Alfredo García Mondragón, Executive Managing Director of SIE7E ENERGY, who gives an in-depth explanation of how refining operations could evolve following the pandemic.
Javier Canales, CEO of SECMEX, shared the company’s strategy as the largest and strongest bulk buyer of gasoline in western Mexico and its association with PEMEX. Read about the company’s success story and further expansion plans.