Oil Price Saharan Blend - Algerian Benchmark CrudeSahara Blend Benchmark Pricing For Less
Who Produces Oil Price Sahara blend?
Algeria’s national oil company, Sonatrach, is Africa’s largest oil producer. The company has a production capacity of 1.2 million barrels per day and operates in more than 40 countries. Sonatrach is also involved in natural gas production, with a capacity of around 95 billion cubic meters per year. The company has been hampered by allegations of corruption in recent years, but continues to be a key player in the global energy market.
Rhourde Oulad Djemma Oil Fields
The ROD Integrated Development project comprises the development of six main-field oilfields in the Berkine Basin. Associated liquids and gas are re-injected into the reservoir to bolster pressure support to the reservoir. The Processing Facility has a capacity of 80,000 bpd
Algeria Oil history
Algerian Crude Oil Industry
Algeria has a long and varied history of oil production. The first commercial oil discovery was made in 1902, and production began in earnest in the 1920s. However, it was not until the 1950s that the country’s National Oil Company (Sonatrach) began to play a significant role in production. In recent years, Sonatrach has been working to increase production and attract new investment to the sector.
In 1971, the United States discovered large deposits of oil in the Sahara Desert. This discovery led to a boom in exploration for oil and gas throughout much of the rest of the world. The Saharan Blend crude oil was one of the products of this boom.
Algeria is a member of OPEC, which stands for The Organization of Petroleum Exporting Countries and has some influence over the price of crude oil. OPEC is a group of countries that work together to control the price of crude oil by increasing or reducing supply.
Algerian Sahara Blend
Sahara blend produced in Algeria and is a light, sweet crude oil. The blend has an API gravity of about 45 degrees and a sulfur content of 0.1 percent. It is typically priced at a discount to dated Brent and shipped to refineries in Europe and North America.
What factors influence the price of Algerian Oil?
Saharan Blend is a type of crude that is extracted from the Sahara Desert. It is a light, sweet oil that is relatively easy to refine. The price of Saharan Blend is affected by a number of factors, including:
Supply and demand
The global supply and demand impacts Algerian benchmark crude.
The level of production in the Sahara Desert and its neighbours including, basra light, Iran heavy, Qatar marine, Bonny light, Kuwait export and other OPEC members activities
The cost of refining oil in different parts of the world and the cost of shipping cargoes
geopolitical factors, such as unrest in the Middle East or North Africa.
Saharan Blend Crude Oil Benchmark For Less
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OPEC BASKET PRICING
Why Is Saharan Blend Important For OPEC?
Crude oil production in Algeria, a key member of OPEC, has been on the rise recently. In November 2017, production reached 1.1 million barrels per day (b/d), up from 1 million b/d in October and 990,000 b/d in September.
The majority of this crude oil is exported, with more than 90% going to Europe and Asia. The country’s largest customers are Italy and Spain, followed by China and India.
Algeria is one of OPEC’s smaller producers, but its Algerian oil is high quality and easy to refine. In recent years, the country has made efforts to increase production and attract new investors. These initiatives have helped boost output and contributed to a decline in global prices for benchmark crude oil, brent.
Most of the country’s crude oil is sold using the official selling price (OSP) which is set monthly by the Algerian government. In August 2018, the OSP was set at $75 per barrel, down from $77 per barrel in July.
The lower OSPs reflect the easing of global crude oil prices since May 2018. In addition, Algeria has been seeking to increase its market share in Europe by offering discounts on its crude oil exports. For example, in June 2018 the country sold 650,000 barrels of crude oil to Spain’s refiner Cepsa at a discount of $2 per barrel below the OSP.
Energy Info Strategic Sourcing
How Sahara Crude Oil Affects Global Markets
The global market for crude oil is constantly changing, and crude oil price benchmarks as well as OPEC basket price can have a significant impact on the Saharan blend.
Sahara blend is one of the most popular crude oils in the world. It is a light, sweet oil that has a low sulfur content, is in high demand because it is easy to refine and produces high-quality products. This makes it a desirable choice for refineries.
Other Benchmark Crude Oils you may be interested in
If you’re interested in saharan blend, you may be interested in our overview of Arab light, North Sea, Bonny light, Basra Light, Iran heavy or the Angolan girassol.
Whichever crude oil benchmark prices you use the chances are Phycomex can help you negotiate a better deal from oil price reporting agency.
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