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

Finance

Port of Rotterdam 2014 Profit Dips

The Port of Rotterdam Authority said on Thursday its net profit for 2014 fell 4.9 percent to 215 million euros ($237 million) on higher financing costs. Europe's

UK Will Force Fridman to sell N.Sea Assets

Britain is ready to force the sale of Russian oligarch Mikhail Fridman's recently acquired North Sea energy assets unless it receives unspecified assurances within the next week,

General Dynamics Board Increases Dividend

The board of directors of General Dynamics today declared a regular quarterly dividend of 69 cents per share on the company's common stock, payable May 8, 2015,

Energy

Port of Rotterdam 2014 Profit Dips

The Port of Rotterdam Authority said on Thursday its net profit for 2014 fell 4.9 percent to 215 million euros ($237 million) on higher financing costs. Europe's

UK Will Force Fridman to sell N.Sea Assets

Britain is ready to force the sale of Russian oligarch Mikhail Fridman's recently acquired North Sea energy assets unless it receives unspecified assurances within the next week,

Ensco Announces Cash Tender Offer

Ensco plc announced today that it has commenced a cash tender offer to purchase any and all of its outstanding 3.25% Senior Notes due 2016 (CUSIP No. 29358QAB5).

News

Vancouver Container Fire Closes Port

A large portion of Canada's biggest port was shut down on Wednesday after a chemical fire broke out amid numerous shipping containers piled up in a yard east of Vancouver's downtown core.

Port of Rotterdam 2014 Profit Dips

The Port of Rotterdam Authority said on Thursday its net profit for 2014 fell 4.9 percent to 215 million euros ($237 million) on higher financing costs. Europe's

UK Will Force Fridman to sell N.Sea Assets

Britain is ready to force the sale of Russian oligarch Mikhail Fridman's recently acquired North Sea energy assets unless it receives unspecified assurances within the next week,

Logistics

Vancouver Container Fire Closes Port

A large portion of Canada's biggest port was shut down on Wednesday after a chemical fire broke out amid numerous shipping containers piled up in a yard east of Vancouver's downtown core.

Port of Rotterdam 2014 Profit Dips

The Port of Rotterdam Authority said on Thursday its net profit for 2014 fell 4.9 percent to 215 million euros ($237 million) on higher financing costs. Europe's

MacGregor Wins Chinese Shipyard Order

MacGregor, part of Cargotec, has received an order from Wuhu Xinlian Shipyard in China for eight MacGregor dry bulk cement handling systems.   The fully automated

Middle East

Coastal Interceptors for Kuwait Coast Guard

Following an extensive evaluation protocol, the Kuwaiti Ministry of the interior has placed an order with Tampa Yacht Manufacturing LLC based in Florida – U.

Newlead Bags Panamax COA

NewLead Holdings Ltd. announced today that it has entered into a Contract of Affreightment for one of its dry bulk vessels, the Panamax Newlead Markela, for the transportation,

ICS: EU Must Act in Mediterranean Crisis

The International Chamber of Shipping (ICS) says EU Member States must act urgently to prevent the loss of thousands more lives, as the humanitarian crisis in the

 
 
Maritime Contracts Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics 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: 0.2020 sec (5 req/sec)