+234-1-453-7796
info@equitypetroleum.com | | |

Oil prices continue losses on global economy fears

source Emergy Mix Report on Oct 7, 2019

Oil prices fell on Monday, extending last week’s heavy losses, with traders fearing the global economic slowdown will weigh on future oil demand growth while pegging hopes for a rebound on progress in talks this week on ending the U.S.-China trade war.

Brent crude futures LCOc1 edged down 28 cents to 58.09 dollars a barrel by 0300 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 was at 52.64 dollars, down 17 cents.

Both contracts ended last week with a more-than-5 per cent decline after dismal manufacturing data from the United States and China, as the lingering row between the world’s top economies hurts global growth and raises the risk of recession.

U.S. and Chinese officials will meet in Washington on Oct. 10-11 in the next, much-anticipated fresh effort to work out a deal.

On the supply side, a faster-than-expected resumption in Saudi Arabia’s production after a Sept. 14 attack on key production facilities also exerted downward pressure on oil prices, although the Middle East remained tense.

“The macro headwinds outweigh supply concerns for oil now, despite tensions in the Middle East and a reduced spare capacity pillow,” said Stephen Innes, Asia Pacific market strategist at AxiCorp.

In Iraq, the second-largest producer among the Organization of the Petroleum Exporting Countries, deadly anti-government unrest is posing the biggest security and political challenge so far to Prime Minister Adel Abdul Mahdi’s year-old government.

Iraq’s oil exports of 3.43 million barrels per day (bpd) from Basra terminals could be disrupted if instability lasts for weeks, Ayham Kamel, Eurasia Group’s practice head for Middle East and North Africa, said in a note.

“Any oil production disruption would occur at a time when Saudi Arabia has lost a significant part of its energy system redundancies (spare capacity),” he said.

“While Saudi oil production is now close to 9.9 million bpd, it is not clear that the capacity is fully operational at 11.3 million bpd and the (attacked) Abqaiq facility has lost a significant part of its redundancy.”

Global supply also faces facility repair and maintenance pressures.

The Buzzard oil field in the British North Sea has been shut for pipe repair work, a spokesman from China’s CNOOC said on Friday.

Buzzard is the main contributor to the Forties crude stream, the largest of the five North Sea oil grades that underpin Brent crude futures.

Meanwhile Libya’s National Oil Corporation (NOC) said on Sunday it will close the Faregh oil field at Zueitina port for scheduled maintenance from Monday until Oct. 14.

 

Source: Guardian


More Insights
Shell units battle U.K. lawsuit over Nigerian oil spill

Two Royal Dutch Shell Plc units were sued over their involvement in one of the largest oil spills in Nigeria’s history. Shell Nigeria Exploration & Production Co. and Shell International Trading & Shipping Co. allegedly undermined the emergency response to the spill eight years ago and made inadequate efforts to contain it, according to lawyers…

NNPC, others frown over gas price cap in Nigeria

THE Nigerian National Petroleum Corporation, NNPC, has expressed dissatisfaction as the Federal Government continues to fix the price of gas in Nigeria. This, according to the corporation discourages investment, desired to end gas flaring in the country. Speaking on the sideline of the just concluded Gastech conference in the United States, the group managing director,…

Stakeholders raise concern over poor metering of crude output in Nigeria

The Nigeria Extractive Industries Transparency Initiative (NEITI), and other stakeholders in the oil and gas sector, yesterday, in Abuja, insisted that inadequacy in the metering of crude oil production in the country could continue to affect the nation’s revenue. Indeed, without urgent efforts to address the situation, the stakeholders believe the volume of oil stolen…

OPEC, GECF seal MoU pact to strengthen cooperation

The Secretaries General of the Organization of the Petroleum Exporting Countries (OPEC) and the Gas Exporting Countries Forum (GECF) today signed a Memorandum of Understanding (MoU) to strengthen cooperation in research and the sharing of best practices. HE Mohammad Sanusi Barkindo, Secretary General of OPEC, and his GECF counterpart, HE Yury Sentyurin, signed the MoU…

EPSNL Insights in a collation of Nigeria's oil and Gas Industry news and developments pulled together from various sources to enhance our site's user awareness...


Previous Insights
Nigerian crude offered from S-African storage as Total wins BPCL tender

A cargo of Nigerian crude was offered from storage in South Africa, traders said on Wednesday, reflecting the Brent market's move into a structure...

Shell to begin gas production at expanded Gbaran-Ubie gas project

Royal Dutch Shell says it has begun gas production from the second phase of the Gbaran-Ubie project in Nigeria's Niger Delta, Nasdaq reports. The project...

NNPC, IOCs plan joint security apparatus to reduce oil and gas sabotage

The Nigerian National Petroleum Corporation (NNPC) is working closely with the international oil companies (IOCs) to deploy a structured and holistic security apparatus to...