The projected restart of Colonial Pipeline’s Line 1, which can carry more than 1 million barrels a day of gasoline from the Gulf Coast to the eastern U.S., was pushed back to next week. Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the USA last week rose by 2 to 416, marking the 11th increase in 12 weeks.
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Returning supply from Libya and Nigeria will hamper a rebalancing of the global crude market, weighing on sentiment, traders said. “It would be the U.S. We would be back soon enough in a situation where the U.S. will move toward its previous boom-rate of growth and therefore start absorbing market share again”, Wood Mackenzie analyst Ann-Louise Hittle said.
That came after government data published on Wednesday showed large weekly builds in USA petroleum products. The open interest of the contract stood at 25944 lots.
After the report, oil experienced losses with West Texas Intermediate crude dropping by as much as $1.25 to $45.04 per barrel down by 2.7 percent.
Both contracts have fallen 8-9 per cent in just one week, underlining how volatile the oil market now is.
August crude exports from Iran excluding condensate roughly doubled from a year ago to 2.11 million bpd, the source said, based on data compiled from tanker loading schedules.
Iran crude exports hit 5-year high near pre-sanctions levels was posted in Business of TheNews International – https://www.thenews.com.pk on September 17, 2016 and was last updated on September 17, 2016. Austria’s OMV said on Friday it had taken delivery of an Iranian crude oil spot delivery in Italy, its first cargo from Iran since 2012.
But the prospect of Nigeria and Libya restoring lost output was also key.
“Exports of Nigerian Qua Iboe crude, which have been under force majeure since July, will reportedly resume by late September/early October”.
Libya is resuming oil exports from some of its main ports and has lifted related force majeure contractual clauses, the National Oil Corporation (NOC) said. Attention now shifts to the forthcoming meeting between major oil producers later in September to discuss an output freeze.
As a result, the IEA stresses “supply will continue to outpace demand at least through the first half of next year”, underlining that global inventories would continue to grow, and “it looks like we may have to wait a while longer”, for the markets to balance.
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“In the absence of a clear price anchor we believe that while oversupply persists crude will likely trade in a wide range between cash costs of current supply at $30/bbl and lower and the long-run marginal cost at $60-80/bbl”, they wrote.
