Brent Crude Hits New 14-month Low

Posted by Eric Haun
Monday, August 18, 2014

Brent crude oil shed nearly $2 a barrel to reach its lowest price in over a year on Monday as investor concerns over conflict in Ukraine and Iraq eased, and as higher Libyan oil output added to already ample supplies.

"You had a very solid run-up on Friday, probably related to geopolitical risk going into the weekend, and you have a hangover (Monday) because of that," said Stephen Schork, editor of the Schork Report in Villanova, Pennsylvania.

Crude pared gains from Friday's spike when the government in Kiev said its artillery had partially destroyed a Russian armoured column.

By Monday, Kiev military reported new successes overnight, building on a weekend breakthrough when Ukrainian troops raised the national flag in Luhansk, a city held by pro-Russian separatists since fighting began in April.

Brent crude fell $1.93 to settle at $101.60 a barrel, after notching a session low of $101.11, the lowest since June 2013.

U.S. crude for September fell by 94 cents to settle at $96.41, after paring losses from an earlier low of $95.81.

U.S. crude futures prices were briefly lifted off intraday lows by a report from industry intelligence company Genscape of "further increased activity" at CVR Refining LP's 115,000 barrel-per-day Coffeyville, Kansas, refinery.

The Kansas Department of Health and Environment, however, said the refinery, which was shut by a fire on July 29, remained closed. The refinery has direct access to the Cushing, Oklahoma, oil storage hub and delivery point for the U.S. crude contract.

The September U.S. crude contract is set to expire on Wednesday. Its premium, or backwardation, to the October contract widened to $2.66, indicating supplies in the later month were expected to be more ample than in the immediate-term.

Phil Flynn, analyst at the Price Futures Group in Chicago, said Coffeyville could need additional crude as soon as it was up and running in order to make up for lost production.

He also said refineries were entering "shoulder season," a period of weak oil demand when summer driving wanes and winter has not yet begun.

In Iraq, Kurdish peshmerga fighters and Iraqi forces have pushed Islamic State militants out of Mosul dam, state television reported, while higher Libyan output threatens to compound ample supply.

Advances by militants in Iraq in June prompted a rise in oil prices, although the fighting has yet to affect oil supplies from southern oil ports, the outlet by which almost all of Iraq's crude exports reach world markets.

Libya's production, disrupted for months by strikes and protests, had risen to 535,000 bpd on Sunday, higher than previously reported, but still far below the 1.4 million bpd pumped last year.

(By Anna Louie Sussman; Additional reporting by Alex Lawler and Jacob Pedersen; Editing by David Evans, Keiron Henderson, Marguerita Choy and Lisa Shumaker)

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Substantial Demand Underscores Need for TIGER Grants

U.S. Transportation Secretary Anthony Foxx has announced that applications to the U.S. Department of Transportation for its seventh round of Transportation Investment

Diana to Acquire Two Post-Panamax Containerships

Diana Containerships Inc. announced that yesterday it signed, through two separate wholly-owned subsidiaries, two Memoranda of Agreement to purchase from an unaffiliated

Intelsat Records $598 mln Q2 Revenue

Satellite services provider Intelsat S.A. has reported total revenue of $598.1 million and net income attributable to Intelsat S.A. of $60.2 million, or $0.47 per common share on a diluted basis,

Energy

US Senate Energy Panel Votes to Lift Oil Export Ban

The U.S. Senate Energy Committee on Thursday passed a bill that would lift a decades-old ban on the export of crude oil.   The 22-member panel passed the bill

Activists Block Shell's Arctic Drilling Quest

Greenpeace protestors dangling from a bridge on Thursday in Portland, Oregon, halted an icebreaker that Royal Dutch Shell needs in northern Alaska before it can

MARAD to Host Meeting on Proposed Delfin LNG License

MARAD Announces Public Scoping Meetings for Proposed Delfin Liquefied Natural Gas Deepwater Port Export Facility.   On July 29, the Maritime Administration

News

AEU Presents Safety Awards

The American Equity Underwriters, Inc. (AEU) presented its 2014 Safety Awards at the annual American Longshore Mutual Association, Ltd. (ALMA) Conference on July 19, 2015, in Key Biscayne, Fla.

UK Navy Chooses Effer Crane Again

Cranes manufacturer Effer informs its marine crane has recently been installed aboard the U.K. Royal Navy’s patrol vessel HMS Mersey.   The new 5s 275M crane,

US Senate Energy Panel Votes to Lift Oil Export Ban

The U.S. Senate Energy Committee on Thursday passed a bill that would lift a decades-old ban on the export of crude oil.   The 22-member panel passed the bill

Logistics

Hapag-Lloyd Names Haeser Next CCO

Container shipping line Hapag-Lloyd AG’s supervisory board has appointed Thorsten Haeser as a new executive board member in charge of Hapag-Lloyd’s global sales

Legislation Introduced to Lift Cuba Embargo

A new piece of legislation, the Cuba Trade Act of 2015, was introduced in Congress Tuesday that aims to lift the Cuba embargo and allow for U.S. businesses in the

Maritime Experts to Debate Coastal Shipping, IWT Prospects

The opportunities and challenges faced by India’s coastal shipping industry as the country strives for a more optimal modal mix among various modes of transport

Middle East

New Suez Canal Ready for Business

Suez Canal Authority (SCA) chairman Mohab Mamish officially called on international maritime navigation lines to use the New Suez Canal, scheduled to be inaugurated August 6.

Egypt to Allow 24-hour Access to East Port Said with New Waterway

Egypt plans to allow smaller vessels in the Mediterranean direct access to East Port Said around the clock instead of just eight hours a day by building a side channel near the Suez Canal,

Work Begins on $1.6 bln Container Terminal at Jebel Ali Port

DP World Chairman Sultan Ahmed Bin Sulayem announced the start of construction work on a brand new container terminal at Jebel Ali Port, Dubai.   Phase 1 of the

 
 
Maritime Contracts Maritime Security Offshore Oil Pipelines Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1688 sec (6 req/sec)