Oil Price - July 10
Posted: Tue Jul 10, 2018 7:35 am
Brent: Oil futures rose Tuesday, pushing the global benchmark near the $80-a-barrel threshold, as strikes by workers in Norway and Gabon added to global production outages.
West Texas Intermediate crude for August delivery CLQ8, +0.39% up 30 cents, or 0.4%, to $74.15 a barrel, while September Brent crude LCOU8, +1.17% the global benchmark, jumped 96 cents, or 1.2%, to $79.03 a barrel on the ICE Europe exchange.
The strike by oil workers in Norway forced the shut in of 23,000 barrels a day of crude and 3,500 barrels a day of natural-gas liquids, said Robert Yawger, director for energy at Mizuho Securities U.S.A., in a note. A strike in Gabon was expected to take 54,000 barrels a day of production offline, according to JBC Energy. That adds to continued outages in Libya and Canada.
Output in Libya amounts to 527,000 a barrel, said analysts at Commerzbank, citing the director of the state oil company, which is less than half its February level. And output is set to decline further due to the closure of key oil terminals, they said, in a note. An outage at a production facility in Canada that isn’t expected to return to full utilization until midmonth has taken another 360,000 barrels a day offline.
“To top it all, there is also the looming decline in Iranian oil exports which would doubtless result in a considerable reduction in spare production capacities,” the Commerzbank analysts said. “According to well-informed sources, Japan for example will cease importing oil from Iran after September if it is not exempted from the U.S. sanctions.”
London: According to a report by Mehr News Agency, quoting latest data from Iran's national oil company, Iran's oil exports are expected to drop by 500,000 bpd with the restart of sanctions. The latest US sanctions are set to come in effect from August and the harshest sanctions will hit in November. President Trump's goal is to take Iran oil exports to zero by early 2019.
West Texas Intermediate crude for August delivery CLQ8, +0.39% up 30 cents, or 0.4%, to $74.15 a barrel, while September Brent crude LCOU8, +1.17% the global benchmark, jumped 96 cents, or 1.2%, to $79.03 a barrel on the ICE Europe exchange.
The strike by oil workers in Norway forced the shut in of 23,000 barrels a day of crude and 3,500 barrels a day of natural-gas liquids, said Robert Yawger, director for energy at Mizuho Securities U.S.A., in a note. A strike in Gabon was expected to take 54,000 barrels a day of production offline, according to JBC Energy. That adds to continued outages in Libya and Canada.
Output in Libya amounts to 527,000 a barrel, said analysts at Commerzbank, citing the director of the state oil company, which is less than half its February level. And output is set to decline further due to the closure of key oil terminals, they said, in a note. An outage at a production facility in Canada that isn’t expected to return to full utilization until midmonth has taken another 360,000 barrels a day offline.
“To top it all, there is also the looming decline in Iranian oil exports which would doubtless result in a considerable reduction in spare production capacities,” the Commerzbank analysts said. “According to well-informed sources, Japan for example will cease importing oil from Iran after September if it is not exempted from the U.S. sanctions.”
London: According to a report by Mehr News Agency, quoting latest data from Iran's national oil company, Iran's oil exports are expected to drop by 500,000 bpd with the restart of sanctions. The latest US sanctions are set to come in effect from August and the harshest sanctions will hit in November. President Trump's goal is to take Iran oil exports to zero by early 2019.