Brent Crude Slips Towards US$102

Posted by George Backwell
Tuesday, September 02, 2014
HFO: File image

Brent crude fell towards $102 a barrel on Tuesday on concerns of slowing oil demand growth due to weak economic recoveries in China and Europe, although new unrest in OPEC oil producer Libya kept losses in check.

* Weak factory data in China, Europe raise oil demand concerns
* Libya government loses control of ministries
* Libya's oil output at 700,000 bpd
* North Sea Buzzard oil field shut again - sources

Euro zone manufacturing growth slowed slightly more than initially thought in August, while growth in China's factory sector slipped to a three-month low last month, adding to concerns about oil demand.

Brent prices have trended higher since mid-August as speculators have come back into the market following a drop of nearly $15 to around $101 a barrel over the previous two months.

"Still, the economic recovery in Europe and especially in China is not strong, and we've seen no supply shortages in Iraq," said Ken Hasegawa, a commodity sales manager at Newedge Japan.
"There is no real direction in the market until heating oil demand kicks in closer to winter. We think the decline in oil prices has stopped and it will not go below $100, but upside is also limited at the moment," Hasegawa said.

Brent crude for October delivery was 26 cents lower at $102.52 a barrel at 0707 GMT. The contract ended the previous session 40 cents lower.

U.S. crude was down 32 cents from Friday's close, at $95.64 a barrel. Trading in the United States was shut on Monday for the Labor Day holiday.

Libya fighting
Renewed fighting in Libya could dent hopes of higher crude exports from the OPEC member, after the government said it has lost control of most ministries and state institutions located in Tripoli to rival armed groups.

The violence comes as the North African country has raised oil production to 700,000 barrels per day (bpd) from as low as 155,000 bpd in May, although still much below its potential of 1.6 million bpd.

Iraq's oil exports fell in August to an average of 2.375 million bpd from 2.442 million bpd in the previous month, mainly due to bad weather.

Iraqi exports from its southern ports have largely remained unaffected by fighting in the country. But shipments from the northern oilfields of Kirkuk have been shut since March 2 due to attacks on a pipeline to Turkey, keeping total exports below their potential.

Physical demand for crude oil has plummeted in recent months, creating a glut in Asia and the Atlantic basin and causing the futures market to flip into contango - a market where future prices are higher than for immediate delivery.

"With the weakness of the physical market having reached a level where traders ponder (floating) storage plays, the age of super-contango will flash through the heads of key OPEC players," analysts at JBC Energy said in a note.

"We expect core OPEC countries to curtail output in line with their market perceptions, with a Saudi 500,000-bpd cut in just two months in late 2012 giving an indication of what can be done easily," they said.

Output from Britain's Buzzard oilfield has stopped again after returning from maintenance last week, trading sources said on Monday, as the field endures a stuttering return to full output after summer work on the rig.

Buzzard is the biggest contributor to the Forties oil stream, one of the four benchmark crudes underpinning the price of Brent crude oil futures, and is closely-watched by oil traders.

By Jacob Gronholt-Pedersen
 

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

People & Company News

Sapurakencana Wins 3 Petronas Oil blocks

SapuraKencana Petroleum Berhad today announced that it has entered into Sale and Purchase Agreements to acquire the entire interest of PETRONAS in 3 blocks offshore

Kemp Succeeds Semple at Wood Group

Wood Group announced following changes to its senior management team. Alan Semple, chief financial officer (CFO) has advised the board that he intends to

ST Engineering Rejigs Top Deck

Singapore Technologies Engineering Ltd (ST Engineering) today announced the appointment of senior management personnel to new key management positions in the

Contracts

Sapurakencana Wins 3 Petronas Oil blocks

SapuraKencana Petroleum Berhad today announced that it has entered into Sale and Purchase Agreements to acquire the entire interest of PETRONAS in 3 blocks offshore

Time-out for Kwanza Drilling

Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola.

President Pryor Retires from ExxonMobil Chemicals

Stephen D. Pryor, president, ExxonMobil Chemical Company and vice president of Exxon Mobil Corporation, has elected to retire on January 1, 2015, after more than 44 years of service.

Finance

ST Engineering Rejigs Top Deck

Singapore Technologies Engineering Ltd (ST Engineering) today announced the appointment of senior management personnel to new key management positions in the

MHI Receives "Best IR Award"

Mitsubishi Heavy Industries, Ltd. (MHI) has received one of this year's "Best IR Awards" presented annually by the Japan Investor Relations Association (JIRA).

Houston Port Commission Approves budget

The Fiscal Year 2015 Operating and Capital Budget was approved Thursday during a special meeting of the Port Commission of the Port of Houston Authority.   Projections

Energy

Sapurakencana Wins 3 Petronas Oil blocks

SapuraKencana Petroleum Berhad today announced that it has entered into Sale and Purchase Agreements to acquire the entire interest of PETRONAS in 3 blocks offshore

Kemp Succeeds Semple at Wood Group

Wood Group announced following changes to its senior management team. Alan Semple, chief financial officer (CFO) has advised the board that he intends to

Baker Hughes to Present at Wells Fargo's 2014 Energy Symposium

Baker Hughes Incorporated announced today that the Company's Vice President and Chief Strategy Officer, Derek Mathieson, will present at Wells Fargo's 2014 Energy Symposium on Wednesday,

Fuels & Lubes

Environmental Groups: IMO Polar Code Too Weak

The International Maritime Organization (IMO) today adopted the Polar Code aimed at regulating shipping in Polar Regions. Several environmental groups have criticized

Cost to Fuel Ships Falls

For a ship that burns 24 tonnes of fuel per day while steaming, fuel costs are reduced by as much as $1 million a year if current price level stay put. Assuming

Belgian Strike to Impact Antwerp Port

A strike in parts of Belgium on Monday is expected to disrupt rail services and one of Europe's largest ports as trade unions and workers voice their anger over

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.1638 sec (6 req/sec)