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OPEC Fails To Cut Oil Exports Below 2016 Levels

September 7, 2017 Irina Slav 0

OPEC exported 25.19 million bpd of crude oil last month, the lowest since April this year, Thomson Reuters Oil Research said, but the eight-month average for the year to date was 25.05 million barrels, exceeding the average for the corresponding period of 2016, which stood at 24.85 million bpd. What’s more disheartening for the cartel, which has been cutting production since last December, is that the August fall was mostly a result of supply disruptions in Africa rather than the outcome of the conscious effort. “Crude oil exports from…

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OPEC Deal Could Be Extended Beyond March 2018

September 5, 2017 Irina Slav 0

The crude oil production cut deal that OPEC, Russia, and several other producers agreed to late last year could get yet another extension. This extension would push the deal beyond the March 31, 2018 end date that was agreed earlier this year, according to Russia’s Energy Minister Alexander Novak, speaking to news agency TASS. Novak said he had discussed another extension with his Saudi counterpart, Khalid al-Falih, at a meeting in Saint Petersburg earlier this year, noting that all options are on the table and no decisions have been made…

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In A Bold Move, Saudis Raise Crude Prices For Asia

September 5, 2017 Irina Slav 0

Saudi Arabia’s Aramco said yesterday that it will raise the October price of its Arab Light crude oil blend for Asian clients by US$0.55 a barrel to a premium of US$0.30 to the Oman/Dubai average. The increase signals growing demand for Saudi crude and improved refining margins in Asia thanks to the supply disruptions in the Gulf of Mexico that Hurricane Harvey caused. The average profit margin for a refinery in Singapore, Reuters’ Clyde Russell noted in a recent column, hit US$10.21 a barrel in the wake of Harvey. Aramco is certainly…

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Post Harvey: Crude Climbs As Gasoline Crashes

September 5, 2017 Irina Slav 0

As refineries along the Gulf Coast started returning to normal operations after Hurricane Harvey, WTI prices inched up despite a sluggish trading session yesterday due to Labor Day. At around 9:20 AM CST today, the U.S. benchmark was trading at US$48.65 a barrel, up 2.88 percent. Brent, on the other hand, was up 1.8 percent to US$53.28. The biggest storm in more than five decades to hit the Texas coast took about 20 percent of the country’s refining capacity offline. As of Sunday, the Wall Street Journal noted, citing S&P Platts, around…

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A War With North Korea Could Send Oil Prices Skyrocketing

September 4, 2017 Irina Slav 0

An open military conflict in Northern Asia would disrupt more than a third of global seaborne crude oil trade, Wood Mackenzie warned last week amid yet another escalation between North Korea, its neighbors, and the U.S. Such a conflict would cripple North Asia’s production and refining capacity, the consultancy said. Some 65 percent of Asia’s crude oil refining capacity is located in China, Japan, and South Korea, so the effects of an open war would be far-reaching and potentially long-lasting. The most pressing question, then, is how…

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Is Big Oil Prepared For The Natural Gas Era?

September 4, 2017 Irina Slav 0

By 2034, natural gas will overtake oil as the main source of energy, and by 2050 it will be the single largest such source globally, satisfying 27 percent of demand. That’s according to the first Energy Transition Outlook by DNV GL, a global quality assurance and risk management services provider for the oil and gas, maritime, and power industries. Gas supply, however, will peak in 2035. In crude oil, DNV’s report forecasts, supply will plateau between 2020 and 2028, after which it will begin declining steadily. That’s bad news…

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Rover Gas Pipeline Gets Phase 1A Approval

September 1, 2017 Irina Slav 0

The Federal Energy Regulatory Commission has given the go-ahead to the Rover natural gas pipeline project’s Phase 1A, which will transport gas from Cadiz to the Midwest Hub, near Defiance in Ohio. The hub will serve as a distribution center for 68 percent of the gas Rover transports across the States. The US$4.2-billion pipeline, still under construction, will eventually have a daily capacity of 3.25 billion cu ft from the Marcellus and Utica shale plays. While the bulk of the gas will be supplied to the domestic market, 32 percent of it…

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Russian Energy Unaffected By U.S. Sanctions

August 31, 2017 Irina Slav 0

President Trump signed an array of sanctions against Russia, Venezuela, and North Korea, with those against Russia specifically targeting the country’s energy industry. The idea of sanctions, theoretically, is to pressure a government into changing its behavior. In reality, U.S. sanctions on Russia do not seem to be having the desired effect, and it’s business as usual for Russian oil and gas, according to a Reuters report citing a number of local industry insiders. Russia’s oil industry has been the target of U.S. sanctions since…

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Gasoline Shortages Loom On East Coast As Colonial Pipeline Shuts Down

August 31, 2017 Irina Slav 0

The destruction Hurricane Harvey leaves in its wake has prompted the shutdown of a major fuel artery to the East Coast, the Colonial pipeline. The pipeline, which has a daily capacity of over 100 million gallons of fuels, has two lines, one for gasoline and one for diesel and jet fuel. The diesel and jet fuel line shut down yesterday and the gasoline line, already operating at a reduced capacity due to lower refinery output in Texas, will be shut down today. Gas prices, already on a skyrocket route thanks to Harvey, will rise further, especially…

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Pemex Needs Partner For $10.7B Offshore Oil Project

August 31, 2017 Irina Slav 0

Big Oil and independents will have to reach deep into their pockets if they want to win the farm-out rights to Mexico’s Nobilis-Maximino offshore field, as the cost of the project has been estimated at US$10.7 billion. This is what the head of the country’s energy regulator told Reuters in an interview, adding that the National Hydrocarbons Commission will tender the farm-out rights on January 31 next year, along with the auction of several more offshore fields. Juan Carlos Zepeda said the Nobilis-Maximino field, which contains an estimated…

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