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

Finance

Vard Increased Revenues 15.8% in 2014

Shipbuilder Vard Holdings Limited increased revenues 15.8% in 2014, the company announced in its year-end financial report today. On the back of very high activity

CGG to cut Vessel Fleet Further

French seismic group CGG said on Thursday it would further cut its fleet of seismic vessels after declining demand from oil and gas clients hit by the falling oil

Atlantic Gas Swings Keep LNG Traders Guessing

MILAN, Feb 26 (Reuters) - Atlantic natural gas markets are seeing some of the biggest price swings in years as volatile European trade, freezing U.S. weather

Energy

Brookings Institution Hosting Panels on LNG Marine Fuel

The Brookings Institution, a Washington D.C.-based think tank, will host a two-panel discussion on the use of LNG as a marine fuel on Tuesday, March 3, the organization announced today.

CGG to cut Vessel Fleet Further

French seismic group CGG said on Thursday it would further cut its fleet of seismic vessels after declining demand from oil and gas clients hit by the falling oil

Atlantic Gas Swings Keep LNG Traders Guessing

MILAN, Feb 26 (Reuters) - Atlantic natural gas markets are seeing some of the biggest price swings in years as volatile European trade, freezing U.S. weather

News

Drying Cabinets Handy On Board Nexus

In 2014, Pronomar equipped Van Oord’s offshore cable laying vessel Nexus with three drying cabinets, each responsible for the drying of eight sets of workwear.

NATO Maritime Commander Visits IMO Antipiracy Training

NATO Maritime Commander Vice Admiral Peter Hudson, CBE Royal Navy, visited the two-week Advanced Maritime Law Enforcement/Training of Trainers course taking place

Electronics Retrofit for Taiwanese Research Vessel

L-3 SAM Electronics has been awarded a contract to retrofit propulsion control and automation systems aboard the Taiwanese Navy’s Ta Kuan hydrographic and oceanographic research vessel.

Government Update

SCI's Worldwide Agents Meet

The Shipping Corporation of India’s (SCI) Worldwide Agents Meet 2015 was this year held in the Auditorium of  it's Maritime Training Institute at Powai. The

USCG Leaders Testify on Budget Requests

USCG Commandant, Master Chief Petty Officer of the Coast Guard testify before the House Subcommittee on Coast Guard and Maritime Transportation   U.S. Coast Guard Commandant Adm.

Petrobras Scandal About to Hit Brazil's Political Class

Brazil's top prosecutor is expected to file charges in coming days against politicians implicated in the Petrobras corruption scandal, a political bombshell that

Logistics

RoRo Ship Enters Operation for WWL

Wallenius Wilhelmsen Logistics welcomes into operation the M/V Thermopylae, the first of its new generation of Post Panamax HERO (High Efficiency RoRo) PCTC vessels.

Containership Becomes Largest to Sail the Thames

The Munkebo Maersk became the largest ship to ever sail up the River Thames as it called at DP World London Gateway, the U.K.’s newest deep-sea port hub. The 399-meter-long,

UK's Dragon LNG Port May Have Booked Two Cargoes

Britain's Dragon liquefied natural gas (LNG) import terminal shows only two unused import slots available over the next 13 days, compared with four slots advertised earlier this week,

 
 
Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Shipbuilding / Vessel Construction Sonar 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: 0.5548 sec (2 req/sec)