Global Oil Market News - Sept 10
Posted: Mon Sep 10, 2018 7:59 am
On September 10, 2018, Reuters reported several armed men attacked the headquarters of the National Oil Corporation (NOC) in the Libyan capital on Monday and blasts were heard before wounded people were ferried away from the building in ambulances, a Reuters witness said. The attack came less than a week after a fragile truce suspended fierce clashes between rival armed groups in Tripoli, the latest eruption of violence in Libya, which has been in turmoil since a 2011 uprising. No group immediately claimed responsibility for Monday's attack. Militants loyal to Islamic State have previously carried out attacks in Tripoli and other Libyan towns and cities.
On September 3, 2018 Reuters reported ExxonMobil (XOM-NC) said on Monday that a blockade by former employees threatens crude production at oil facilities in Nigeria, adding that "disruptions to these operations have the potential to significantly impact revenues." The company made the announcement in a statement after a six-week blockade by former workers at the oil facilities. ExxonMobil subsidiary that released the statement produces over 550,000 b/d of crude oil, condensates and natural gas liquids, according to the company website.
On September 5, 2018, Reuters reported India imported about 523,000 b/d of oil from Iran in August, down 32% on a month earlier, preliminary tanker arrival data showed, as the United States steps up pressure on buyers to halt Iranian energy imports from November. The August 2018 imports were still 56% higher than the same month last year, the data showed, as state refiners were attracted by discounts offered by Iran this year. A senior Indian government official said India, Iran's top oil client after China, would not completely halt Iranian imports and would finalize its strategy on crude purchases after a meeting U.S. officials on Thursday.
On September 5, 2018, Reuters reported Saudi Arabia wants oil to stay between $70 and $80 a barrel for now as the world's biggest crude exporter strikes a balance between maximising revenue and keeping a lid on prices until U.S. congressional elections, OPEC and industry sources said. After announcing the flotation of Saudi Aramco in 2016, the kingdom began pushing for higher crude prices partly to help maximise the valuation of the state oil company ahead of an initial public offering, originally scheduled for 2018. Now, even though the IPO has been shelved, Saudi Arabia still wants to keep oil prices as high as possible without offending Washington, the sources said. Saudi needs cash to finance a series of economic development projects. "The Saudis need oil at about $80 and they don't want prices to go below $70. They want to manage the market like this," one of the sources told Reuters. "They need cash. They have plans and reforms and now the IPO is delayed. But they don't want anyone else talking about oil.
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Conclusion: The global oil market is very tight and there are a lot moving parts. After the mid-term elections the sanctions against Iran will make the oil markets "Super Tight". Any other Unplanned Supply Outage (Libya, Nigeria, Venezuela, etc, etc, etc) and oil spikes to $100/bbl.
On September 3, 2018 Reuters reported ExxonMobil (XOM-NC) said on Monday that a blockade by former employees threatens crude production at oil facilities in Nigeria, adding that "disruptions to these operations have the potential to significantly impact revenues." The company made the announcement in a statement after a six-week blockade by former workers at the oil facilities. ExxonMobil subsidiary that released the statement produces over 550,000 b/d of crude oil, condensates and natural gas liquids, according to the company website.
On September 5, 2018, Reuters reported India imported about 523,000 b/d of oil from Iran in August, down 32% on a month earlier, preliminary tanker arrival data showed, as the United States steps up pressure on buyers to halt Iranian energy imports from November. The August 2018 imports were still 56% higher than the same month last year, the data showed, as state refiners were attracted by discounts offered by Iran this year. A senior Indian government official said India, Iran's top oil client after China, would not completely halt Iranian imports and would finalize its strategy on crude purchases after a meeting U.S. officials on Thursday.
On September 5, 2018, Reuters reported Saudi Arabia wants oil to stay between $70 and $80 a barrel for now as the world's biggest crude exporter strikes a balance between maximising revenue and keeping a lid on prices until U.S. congressional elections, OPEC and industry sources said. After announcing the flotation of Saudi Aramco in 2016, the kingdom began pushing for higher crude prices partly to help maximise the valuation of the state oil company ahead of an initial public offering, originally scheduled for 2018. Now, even though the IPO has been shelved, Saudi Arabia still wants to keep oil prices as high as possible without offending Washington, the sources said. Saudi needs cash to finance a series of economic development projects. "The Saudis need oil at about $80 and they don't want prices to go below $70. They want to manage the market like this," one of the sources told Reuters. "They need cash. They have plans and reforms and now the IPO is delayed. But they don't want anyone else talking about oil.
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Conclusion: The global oil market is very tight and there are a lot moving parts. After the mid-term elections the sanctions against Iran will make the oil markets "Super Tight". Any other Unplanned Supply Outage (Libya, Nigeria, Venezuela, etc, etc, etc) and oil spikes to $100/bbl.