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

People & Company News

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

Ports

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

Finance

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

Energy

MARAD Seeks Comments on Proposed Policy for Deepwater Export Applications

The Maritime Administration (MARAD) is seeking comments on the agency’s proposed policy to accept, evaluate and process license applications for the construction

Oil Drillers Group to Fight U.S. Export Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Fuels & Lubes

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

UASC Targets Expansion to Beat Container Market Blues

UASC expects to reach volume of 2.35 mln TEU in 2014 Global carriers still struggling with weak conditions United Arab Shipping Company (UASC) is on a major expansion drive,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Ship Repair Ship Simulators Winch
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: 0.1907 sec (5 req/sec)