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

Tanker Trends

Latest Ocean-Going Shipbuilding Orders

Clarkson Hellas notes in its latest 'S&P Weekly Bulletin' shipbuilding orders placed in the dry bulk, tankship, gas carrier and containership sectors, as follows: Dry

Livanos Becomes Euronav Chairman

On 22 July 2014, the Board of Directors of Euronav NV unanimously appointed Peter G. Livanos as Chairman of the Board, with immediate effect in replacement of Marc

MN 100: gplink

1500 Sensation Weigh Beaufort, NC 28516 Tel: (252) 504-2640    Email: dwebb@gplink.com Website: www.gplink.com President & CEO: Greg Poole, III The Company: gplink

Ports

Big Increase in Port of Houston Steel Cargoes

More steel moved across the docks in July than any month since 2008, Executive Director Roger Guenther reported at the recent meeting of the Port Commission of the Port of Houston Authority.

Storm Surge Halts Vessel Operations at Long Beach

Two cargo terminals at the Port of Long Beach announced Wednesday, Aug. 27, that they were suspending vessel operations for the day because 10- to 15-foot high

Port of New Orleans Sponsors Agricultural Summit

The Port of New Orleans has signed on as a sponsor for the 9th annual Oilseed & Grain Trade Summit, taking place here October 7-9, 2014, at the Hyatt Regency New Orleans.

Finance

ARENA Supporting Bright Ideas in Solar R&D

The Australian Government today announced $21.5 million funding for 12 cutting edge R&D projects that will keep Australia at the forefront of solar research.

Big Increase in Port of Houston Steel Cargoes

More steel moved across the docks in July than any month since 2008, Executive Director Roger Guenther reported at the recent meeting of the Port Commission of the Port of Houston Authority.

Textron Awarded $22-M Navy LCAC Contract Modification

The US Department of Defense informs that Textron Inc., New Orleans, Louisiana, is being awarded a $21,904,620 modification to a previously awarded contract (N00024-12-C-2401)

Energy

ARENA Supporting Bright Ideas in Solar R&D

The Australian Government today announced $21.5 million funding for 12 cutting edge R&D projects that will keep Australia at the forefront of solar research.

LNG Finalizes Acquisition of Bear Head LNG Project

Liquefied Natural Gas Limited today informed having finalised the acquisition of 100% of Bear Head LNG Corporation (BHLC). This follows the announcement

DNV GL-led collaboration to enhance BOP maintenance

The maintenance of blowout preventers (BOPs) has significant financial, logistical and safety implications for drilling operators and rig owners. DNV GL has

Maritime Security

USCG Shares Safety Tips for Labor Day, Riverfest

Labor Day weekend marks the unofficial end of the boating season and is known as one of the busiest recreational boating weekends on the Ohio River. With approximately 2,

Pine Galaxy to Arrive SF Bay Wednesday

The disabled mixed-products tanker Pine Galaxy is expected to arrive in San Francisco Wednesday morning. The ship is being towed by commercial tug to San Francisco Bay.

RN Warship Intercepts Caribean Drug Smugglers

Royal Navy warship HMS Argyll has seized £21 million worth of cocaine after a 12-hour pursuit across the Caribbean, informs the Ministry of Defence. Sailors then

News

USCG Shares Safety Tips for Labor Day, Riverfest

Labor Day weekend marks the unofficial end of the boating season and is known as one of the busiest recreational boating weekends on the Ohio River. With approximately 2,

ARENA Supporting Bright Ideas in Solar R&D

The Australian Government today announced $21.5 million funding for 12 cutting edge R&D projects that will keep Australia at the forefront of solar research.

March on Stress Assesses MPHRP's care

Professor Neil Greenberg of March on Stress at the Institute of Psychiatry, King's College London, visited the Philippines to assess the competencies of mental

Government Update

USCG Shares Safety Tips for Labor Day, Riverfest

Labor Day weekend marks the unofficial end of the boating season and is known as one of the busiest recreational boating weekends on the Ohio River. With approximately 2,

MARAD Evaluates Natural Gas v. Conventional Fuel Emissions

The Maritime Administration (MARAD) informs it has released a study that evaluates total fuel cycle emissions for natural gas versus conventional marine fuels.

Reflex Marine to Bring FROG-6 into Mexico

Reflex Marine has been granted approval by the Mexican Merchant Marines to sell its crane transfer device, the FROG-6, in Mexico. The certification is a result

 
 
Maritime Contracts Maritime Security Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Simulators 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: 0.2046 sec (5 req/sec)