Oil Falls Towards $111 on Libya Ports Deal

Posted by Michelle Howard
Wednesday, July 02, 2014

Oil fell towards $111 a barrel on Wednesday, its lowest in almost three weeks, on a possible substantial recovery in Libyan exports after rebels said they would reopen two oil terminals.


Libyan rebels blockading eastern oil ports have agreed to reopen the remaining two terminals at Es Sider and Ras Lanuf. The port seizures have crippled the OPEC producer's oil industry since last summer.

If fulfilled, the deal would bring back around 500,000 barrels per day (bpd) of crude oil export capacity, although production would remain well below the total of around 1.4 million bpd.

There have been repeated reports in the past that ports would reopen and production increase, but analysts said the latest developments were likely to have more impact.

"It's the Libya effect," Hans van Cleef, senior energy economist at ABN Amro in Amsterdam, said of the drop in oil prices.

It looked as if any drop in Iraq's oil exports due to violence there could be cushioned by rising Libyan exports, he said.

Brent crude was down 76 cents a barrel at $111.53 by 1357 GMT. It was at its lowest since June 12 and down 1.5 percent so far this week, on track for its biggest weekly fall since January.

U.S. light crude fell 67 cents to $104.67 a barrel.

Brent, the North Sea benchmark, hit a nine-month intraday high of $115.71 two weeks ago on worries that a Sunni Islamist insurgency in northern Iraq would hit oil output and exports.

But prices have slipped back steadily since then as oil facilities, mostly in southern Iraq, hundreds of kilometres from the fighting, have remained in operation. Iraq is OPEC's second-biggest producer and exporter and pumped 3 million bpd last month, a Reuters survey showed.

Analysts have even suggested that Iraq's southern oil exports, which recently hit a record high around 2.6 million bpd, could increase further.

"There haven't been many reported attacks in the south over the past few months," said Jessica Watkins, Middle East analyst at the Risk Advisory Group in London.

"I don't think there's much of an imminent risk of (Sunni insurgents) seizing key installations," she added.

Oil producers would struggle to cover another big oil supply outage, industry officials say, increasing the chance governments may tap strategic reserves if Iraq's southern exports were disrupted.

U.S. crude stocks fell by 876,000 barrels in the week to June 27 to 381.7 million, compared with expectations for a decrease of 2.2 million barrels, data from industry group the American Petroleum Institute showed on Tuesday.

Gasoline stocks dropped by 407,000 barrels versus forecasts of a 400,000-barrel gain. Distillate fuel stockpiles, which include diesel and heating oil, rose by 4.4 million barrels, against expectations of an 800,000-barrel gain, it said.

Investors are awaiting official data from the Energy Information Administration (EIA) due at 1430 GMT.

U.S. commercial crude oil inventories were forecast to have dropped in the week to June 27, while refined product stockpiles are likely to have risen, an expanded Reuters poll of nine analysts showed on Tuesday.

The survey forecast crude oil stocks decreased by 2.2 million barrels on average last week.

(By Christopher Johnson and Simon Falush, Additional reporting by Manash Goswami in Singapore; Editing by William Hardy and Dale Hudson)

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

Finance

Alaska Marine Lines Reduces Fuel Surcharge

Alaska Marine Lines, a marine transportation company providing barge service to and from Alaska and Hawaii, informs it has filed with the U.S. Surface Transportation

Bunkers International Files for Bankruptcy

U.S. based bunkering services firm Bunkers International Corp. announced August 28 that it has filed for reorganization under Chapter 11 of the Bankruptcy Code.

Asia-N.Europe Box Rates Jump 26 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped by 26 percent to $591 per 20-foot container (TEU) in the week ended on Friday,

Energy

Harkand: Expanding the Fleet, Growing a Global Business

International inspection, repair and maintenance (IRM) company Harkand aims to be a $1 billion company. MR’s Tom Mulligan recently met with John Reed, the company’s CEO,

ME Production Receives Two Scrubber Orders

ME Production subsidiary Marine Exhaust Technology has been awarded a new contract for the DFDS vessel Finlandia sailing on the route Rosyth-Zeebrugge. The scrubber contract includes design,

HHI Orders Regasification Systems from Wärtsilä

South Korean shipyard Hyundai Heavy Industries (HHI) has ordered two seawater/propane based regasification modules from Wärtsilä. The systems are to be installed

Maritime Security

Greek Coastguard Rescues 2,500 over Three Days

Greece's coastguard has rescued about 2,500 migrants and refugees off the country's eastern islands over the past three days, authorities said on Monday, as the

BIMCO Outlines LIS Week Schedule

BIMCO’s breakfast brief, titled “The Future Of Maritime Security” is aimed at CEOs and Directors who will have an opportunity to hear more on the latest threats

Hurricane Ignacio Will not Affect Hawaiian Port Operations

The Coast Guard Captain of the Port continues to closely monitor the movement of Hurricane Ignacio and based on the storms current trajectory to the northwest

News

Historic WW I Shipwreck Survey Underway

Partnering U.S. agencies have commenced surveying the historic shipwreck of an American lightship shelled and sunk by a German U-boat during World War I nearly 100 years ago.

Bollinger VP Fanguy Snags SNAME Award

Louisiana-based shipbuilder Bollinger Shipyards, LLC announced its vice president for quality management system, Dennis Fanguy, will receive the 2015 William M.

Deal Reached to End MyFerryLink Dispute

A deal was reached on Monday to save hundreds of ferry jobs at the northern French port of Calais, the French transport minister said, ending a dispute that has

Government Update

Greek Coastguard Rescues 2,500 over Three Days

Greece's coastguard has rescued about 2,500 migrants and refugees off the country's eastern islands over the past three days, authorities said on Monday, as the

Ships' lifting Apparatus at Abu Dhabi Ports

Abu Dhabi Ports have informed that they reserves the right to refuse the use of ships' lifting apparatus without valid certification and / or if the apparatus

Australian Defence Unveils Indigenous Artwork

Defence today unveiled an Indigenous painting at its Science and Technology headquarters in Canberra as a mark of respect for cultural diversity within the organisation.

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction 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: 3.7891 sec (0 req/sec)