U.S. Crude Jumps $1 on Jobs Data, Libya Doubt

Posted by Eric Haun
Friday, April 04, 2014

Crude oil prices on both sides of the Atlantic rose on Friday as data showed strong jobs growth in the United States and investors cast doubt on reports Libya's oil ports were about to reopen.

The March U.S. non-farm payrolls report showed 192,000 jobs were added in March in major test of the argument that the economic weakness of January and February was due to bad weather.

Expectations had been building that an eight-month blockage of Libya's oil export ports would end after rebels and the government said they were close to an agreement.

The Libyan government said it had seen evidence of "good intentions" at indirect talks with eastern rebels that could lead to renewed exports.

But previous reports of the reopening of ports have proven false and investors suspect there will again be no breakthrough.

"In the oil market it is Libya that is pulling the strings," said David Hufton, managing director of London brokerage PVM Oil Associates. "High hopes of an imminent settlement with rebels in the east of the country have been punctured."

May Brent crude was up 65 cents at $106.80 a barrel by 11:09 EDT (1509 GMT). U.S. crude for May gained $1.02 to $101.31 a barrel, after earlier rising as high as $101.63. Front-month U.S. crude was set to post its first weekly loss in three weeks.

The spread between Brent and U.S. crude, also known as West Texas Intermediate or WTI, had narrowed to as low as $4.81 by mid-week as Brent lost more than $3 on hopes that Libyan oil would soon be back online. It widened to nearly $6 on Thursday before narrowing again on Friday to $5.49.

"The spread's in today by about 50 cents, which suggests that concerns about Libyan oil making its way back onto the world market place has kind of run its course, and the focus is back on Cushing oil flowing down to the Gulf Coast," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.

The restart of Libya's eastern oil ports could release about 600,000 barrels per day (bpd) of crude, bumping up the OPEC producer's output from around 150,000 bpd but still far from the 1.4 million bpd it produced last July.

Investors remained cautious after a breakdown in agreements between the Libyan government and rebels earlier this year.

"It first remains to be seen whether the oil terminals in the east of Libya do in fact open in the next few days." said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.

"Even if this does happen, however, it is by no means clear whether the previous export volume of 600,000 bpd can be quickly regained," he added. "It takes time for production to be ramped up and for pipelines to be filled."

(By Anna Louie Sussman; Additional reporting by Christopher Johnson in London, Florence Tan and Manolo Serapio Jr in Singapore; Editing by William Hardy, David Evans ansd Steve Orlofsky)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Port of Rotterdam Throughput Dips in 2016

Compared to the first half of 2015, which saw throughput increased by 6.8 percent, the Port of Rotterdam handled 3 percent less cargo in the first six months of 2016,

Libyan Deal to End Oil Ports Blockade Needs Signing

Libyan Petroleum Facilities Guard (PFG) commander Ibrahim Jathran said on Monday he was ready to end a blockade at key oil terminals, but the U.N.-backed government

As Market Sours, LPG Tankers Anchor off Singapore

Record U.S. LPG exports to Asia flip market into a glut. Last year, liquefied petroleum gas (LPG) supplied to Asia was being snapped up by petrochemical makers.

Finance

Funding Approved for Georgia’s New Inland Terminal

At its July board meeting, the Georgia Ports Authority (GPA) approved a spending package of $19.7 million to construct the Appalachian Regional Port in Chatsworth, Murray County, Ga.

Baltic Index Falls on Weak Freight Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Monday due to weaker rates across all segments, except handysizes.

As Market Sours, LPG Tankers Anchor off Singapore

Record U.S. LPG exports to Asia flip market into a glut. Last year, liquefied petroleum gas (LPG) supplied to Asia was being snapped up by petrochemical makers.

Energy

Los Angeles Pushes for Valero Terminal Improvements

The Port of Los Angeles has released an Initial Study/Notice of Preparation (IS/NOP) — the first step in the Environmental Impact Report (EIR) process — for a Marine

Canada Seek to contain Oil Spill

Authorities are building a new containment boom to fight an oil spill in a major western Canadian river, officials said on Saturday, after the spill breached a

Ecuador Pays $112 mln Award to Chevron

Ecuador has paid $112 million to energy company Chevron Corp over a four-decade-old contract dispute, even though it remains in disagreement, the head of the central bank has said.

News

Port of Rotterdam Throughput Dips in 2016

Compared to the first half of 2015, which saw throughput increased by 6.8 percent, the Port of Rotterdam handled 3 percent less cargo in the first six months of 2016,

Libyan Deal to End Oil Ports Blockade Needs Signing

Libyan Petroleum Facilities Guard (PFG) commander Ibrahim Jathran said on Monday he was ready to end a blockade at key oil terminals, but the U.N.-backed government

GAC Russia Expands Eastwards

GAC Russia said it is expanding eastwards with the opening of new branches at Nakhodka and Yuzhno-Sakhalinsk to meet demand for shipping services as opportunities open up in Far East.

Government Update

Libyan Deal to End Oil Ports Blockade Needs Signing

Libyan Petroleum Facilities Guard (PFG) commander Ibrahim Jathran said on Monday he was ready to end a blockade at key oil terminals, but the U.N.-backed government

Funding Approved for Georgia’s New Inland Terminal

At its July board meeting, the Georgia Ports Authority (GPA) approved a spending package of $19.7 million to construct the Appalachian Regional Port in Chatsworth, Murray County, Ga.

ASEAN Breaks South China Sea Deadlock

Manila drops request to refer to court ruling in statement. Southeast Asian nations overcame days of deadlock on Monday when the Philippines dropped a request

Logistics

Port of Rotterdam Throughput Dips in 2016

Compared to the first half of 2015, which saw throughput increased by 6.8 percent, the Port of Rotterdam handled 3 percent less cargo in the first six months of 2016,

Seago Line Introduces New Vessel to Liverpool Service

Maersk subsidiary Seago Line has introduced a new vessel to its recently created feeder service calling at Liverpool. The Independent Accord has already started

Funding Approved for Georgia’s New Inland Terminal

At its July board meeting, the Georgia Ports Authority (GPA) approved a spending package of $19.7 million to construct the Appalachian Regional Port in Chatsworth, Murray County, Ga.

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1559 sec (6 req/sec)