Friday October 27, 2016
In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.
Let’s take a look.
1. Oil outages at lowest since 2012
(Click to enlarge)
- The world seems like it is beset with geopolitical instability, but tell that to the oil market. Unplanned global supply disruptions fell to only 1.6 million barrels per day (mb/d) in September, the lowest level since January 2012, according to the EIA.
- The volume of outages has shrunk by a whopping 1 mb/d in the past six months alone, the result of restored production in Libya, Nigeria and Iraq. Canada also brought some disrupted output – from the horrific wildfires last year – back online in August 2017.
- In fact, the recent peak in outages occurred in the spring of 2016, topping out at more than 3 mb/d of disrupted output in May 2016. That was due to the combination of outages in Libya, Nigeria and Canada.
- It is no wonder that the recent outage in Iraq – due to the seizure of the Kirkuk oil fields by Iraq from the Kurdish government – have barely been reflected in oil prices. Some 400,000 bpd have been taken offline, but Brent is still at about $58 per barrel.
- Moreover, with OPEC keeping barrels off of the market by about 1.2 mb/d,…