Brent Crude Falls Below US$104

Posted by George Backwell
Thursday, August 14, 2014
HFO: File image

Brent crude fell below $104 a barrel on Thursday, after briefly bouncing off a 13-month low the previous day, on ample supplies and concerns about weak demand despite the ongoing political turmoil in Iraq and Ukraine.

* Ample supplies keep pressure on oil prices
* Exports from Libya's Ras Lanuf resume
* Coming up: U.S. weekly jobless claims - 1230 GMT

Oil exports from Libya's Ras Lanuf port have resumed after a year of blockades by armed protesters, while U.S. crude stocks unexpectedly rose last week.

September Brent crude fell 48 cents to $103.80 a barrel by 0655 GMT. The contract, expiring on Thursday, fell to $102.37 on Wednesday, its weakest since July 2013.

U.S. crude was down 46 cents at $97.13 a barrel.

"The supply outlook has been pretty rosy. OPEC production has been pretty good. Supply in Iraq is unaffected," said Phin Ziebell, economist at the National Australia Bank (NAB).
"The situation in the North is desperate but the reality is the majority of the crude production is concentrated in the South of the country," Ziebell said of Iraq.

Thousands of civilians are currently under siege from Sunni militant fighters and a team of U.S. military and aid personnel have landed on Iraq's Mount Sinjar to assess how to evacuate them.

The European Union is also looking into how it could tighten sanctions to stop Islamic State militants from selling oil from fields they have overrun in Syria, a European diplomat said on Wednesday.

LOSSES SEEN CAPPED
U.S. crude inventories rose by 1.4 million barrels last week, data from the Energy Information Administration (EIA) showed on Wednesday, against analysts' expectations for a 2 million-barrel drop.

Crude oil output by the world's top oil consumer is expected to go higher, with the EIA raising its estimate of U.S. crude production forecast for this year to 8.5 million barrels per day (bpd) compared to a previous estimate of 8.42 million bpd.

Next year's output is estimated to be 9.3 million bpd from 9.27 million bpd previously, representing the highest annual average level of production since 1972.

Wednesday's data from China, which included a 6 percent fall in its July implied oil demand from June, added to weak sentiment.

But while supplies are expected to stay high in the short term, losses in crude oil prices will be capped as oil was seen to be oversold, said Avtar Sandu, senior manager for commodities at Phillip Futures.

By Seng Li Peng

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Jet Edge Celebrates 30 Years in Waterjet Industry

Waterjet systems manufacturer Jet Edge, Inc. celebrated its 30th anniversary Sept. 3 with a special open house celebration. Jet Edge’s anniversary event included

TITAN Salvage Receives NAMEPA Award

The North American Marine Environment Protection Association (NAMEPA) announced earlier this month that Houston-based TITAN Salvage, a subsidiary of Crowley Maritime Corp.

MM&P Hopes to Pad Ranks with Brown Water Mariners

New York Harbor Tug Boat Captains and Crews, Staten Island Ferry Workers, Circle Line and Other Tourist Boat Crews Vote on Joining New Union Uniting with the International Organization of Masters,

Ports

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

MM&P Hopes to Pad Ranks with Brown Water Mariners

New York Harbor Tug Boat Captains and Crews, Staten Island Ferry Workers, Circle Line and Other Tourist Boat Crews Vote on Joining New Union Uniting with the International Organization of Masters,

Second Sailing Added to Cleveland-Europe Express

The Port of Cleveland and Amsterdam-based Spliethoff Group announced today their mutual intent to add a second monthly vessel to the Cleveland-Europe Express (CEE),

Finance

NRC Program Targets Vessel Operating Costs, Safety

Canada’s NRC creating solutions for the growing Canadian shipbuilding, military vessels, marine commercial transportation and offshore resource industries As

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

Global Ship Lease to Acquire Containership

Global Ship Lease, Inc. has  announced  that it has agreed to acquire a 8,063 TEU containership from a leading container liner company for a purchase price of $55 million.

Energy

LQT Delivers Accommodation Facility and Helideck in Gulf of Mexico

LQT Industries , a full-service provider of accommodation facilities, design-build construction services, and support services to the oil and gas industry, has

Ingram to Build 20 Tank Barges in 2015

Ingram Barge Company announced that it will build 20 tank barges in 2015 to meet growing demand for chemical shipments. While most of the company’s recent tank

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

Fuels & Lubes

Shell: Nigeria Oil Union Strike Not Affecting Exports

A strike by Nigeria's oil unions is not having any immediate impact on crude oil exports from Africa's top exporter, despite moving into a third day, spokesmen

Ricardo to Support Kongsberg WFMS Development

Ricardo and Kongsberg have signed a framework agreement that will see Ricardo support the development of the Kongsberg Wind Farm Management System (WFMS) as well

Aiming to Make Less Fuel Go Further: Maersk Drilling

Maersk Drilling says it is engaged in an energy efficiency project for its newbuilds together with Maersk Maritime Technology. The project involves an Energy Management System (MSPS),

 
 
Maritime Contracts Maritime Security Maritime Standards Pipelines Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1702 sec (6 req/sec)