• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 7 days Aramco Says No Plans To Shelve IPO
Alt Text

What’s Stopping An Oil Price Rally?

Oil prices rallied in Q3…

Alt Text

Oil Fundamentals Overturn Geopolitical Risk

Geopolitical risk from Iraq and…

Alt Text

Oil Shows Weakness, But Don’t Expect A Plunge

Oil prices remained firm this…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Depreciating Dollar Sees Crude Climb To 7-Month High

Saudi Plant

One-hundred and nine years after the birth of John Wayne, and oil is shootin’ from the hip today, with both Brent and WTI taking a shot at fifty dollardom. As the dollar softens, and as another act of sabotage in Nigeria looks to further stymie production, crude is close to price territory not traversed since last year. Hark, here are five things to consider in oil markets today.

1) Chevron’s Escravos terminal in Nigeria has shut down due to a militant attack. The militant group, the Niger Delta Avengers, have blown up the facility’s crude oil trunkline. We are finally starting to see in our ClipperData that crude loadings are dropping from Nigeria, as various crude grades such as Forcados reflect lesser crude production.

As our ClipperData illustrates, West African loadings are now considerably lower on a year-over-year basis, as Nigerian outages are stacking up, while Ghana has seen loadings halted from its Jubilee field since March:

2) On the economic data front we have seen a refresh of British Q1 GDP hold steady at +0.4 percent QoQ, while Spain has seen its own hold fast at +0.8 percent QoQ. In the U.S. we have seen notoriously volatile durable goods come in notoriously volatile once more, increasing +3.4 percent, versus consensus of just +0.5 percent. The devil is in the details, however, as a 65 percent rise in civilian aircraft orders have sponsored this strength. Weekly jobless claims were mucho better than expected, at 268k versus 275k – having held below 300k for 64 consecutive weeks. Related: Niger Delta Militants Take Entire Chevron Terminal Offline

3) U.S. regulators have a target for fuel economy standards of 54.5 miles per gallon (mpg) by 2025. Yet while the average fuel-economy of light vehicles sold in the U.S. has risen by 5 mpg in since 2007, we have seen recent low gasoline pries encouraging consumers to buy gas guzzlers instead. Pick-up trucks and sport-utility vehicles now account for 58 percent of U.S. vehicle sales, leading to stalling fuel efficiency from a peak in late 2014:

4) While on the topic of gasoline, the chart below via @WMALHittle highlights how the share of premium gasoline has been increasing in recent years due to lower oil prices, more premium and turbo-charged vehicles: Related: 2015 Worst Year For Oil Discoveries Since 1952

5) Finally, the chart below highlights how tanker rates have risen in contrast to the drop in oil prices, as the oil glut has driven down fuel costs and boosted demand for their services.

This is set to change, however, as an influx of new ships are set to hit the market – at about the same time that the oversupply of crude sloshing in the global market is being mopped up. The oil tanker fleet is projected to grow by 11 percent in the next two years; Hartland Shipping Services estimates that 64 VLCCs and 38 Suezmaxes will be delivered this year, with an additional 148 vessels next year, including 47 VLCCs and 63 Suezmaxes. The extra tankers will add around 370 million barrels of capacity to the market.

(Click to enlarge)

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News