• 17 hours Oil Prices Rise After API Reports Major Crude Draw
  • 17 hours Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 18 hours Gazprom Speaks Out Against OPEC Production Cut Extension
  • 18 hours Statoil Looks To Lighter Oil To Boost Profitability
  • 20 hours Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 21 hours Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 22 hours Whitefish Energy Suspends Work In Puerto Rico
  • 23 hours U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 1 day Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 days ConocoPhillips Sets Price Ceiling For New Projects
  • 4 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 5 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 5 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 5 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 6 days Santos Admits It Rejected $7.2B Takeover Bid
  • 6 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 6 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 7 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 7 days Lower Oil Prices Benefit European Refiners
  • 7 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 8 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 8 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 8 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
Alt Text

The U.S. Export Boom Goes Beyond Crude

While U.S. crude oil exports…

Alt Text

Energy Majors Hit Hard By Climate Regulations

Siemens and General Electric have…

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

Oil Rallies Higher, Undeterred By ‘Surprise Surge’ In U.S. Production

Oil

Oil is rallying for a second consecutive day, with continued positive momentum from yesterday's weekly inventory report, in combination with rising hopes of deeper and/or longer production cut commitments by OPEC. (OPEC cuts are starting to feel like QE at the turn of the decade: omnipresent). Hark, here are five things to consider in oil markets today.

1) Yesterday we discussed the impending restart to export flows of Nigeria's Forcados crude, as an export pipeline gets back up and running after militant attacks last year. Nigeria has suffered outages to a number of key grades such as Qua Iboe, Brass River and Bonny Light in the last year or so, but as our ClipperData illustrate below, we are seeing flows of most of these grades getting back up to speed.

The loss of the Forcados crude stream - which averaged ~200,000 bpd of exports in 2015, dropping to ~50,000 bpd last year - has had a material impact on total exports. Similarly, Qua Iboe loadings dropped by about 110,000 bpd on the prior year to average 241,000 bpd in 2016, and have still not returned to 2015 levels.

Exports of these four grades averaged nearly 330,000 bpd lower last year than in 2015. All else being equal, a return to their former glory will lift Nigerian exports to within swinging distance of 2 million barrels per day.

(Click to enlarge) 

2) Pemex announced late last week that Mexican crude exports hit a record low in March at just over 1 million barrels per day. We can see from our ClipperData that exports in April have ticked even lower. The drop in exports is led by falling production; oil production is said to have dropped to 2.02 million barrels per day in March. Output peaked in 2004 at 3.38mn bpd, and has been in structural decline ever since amid a lack of investment. Related: Gas Looting In Mexico Turns Deadly

We can see in our ClipperData that exports to the U.S. have stabilized in the last year, with loadings bound for the U.S. up 3.5 percent through the first third of this year compared to year-ago levels. With the U.S. accounting for ~600,000 bpd of Mexican crude exports, Southern Europe and Asia account for the vast majority of the remaining volume, averaging over 400,000 bpd so far this year:

(Click to enlarge) 

3) Today's piece out on RBN Energy takes a look at U.S. distillate exports, using our ClipperData to highlight how flows are continuing to rise into Central and South America. Last month saw exports rise to the third highest month on our records - surpassed only by June and November of last year. This rise is coming at the expense of flows to Europe, which have been anchored below year-ago levels for the first four months of this year.

(Click to enlarge)

4) OPEC's monthly oil market report has been released, and hark, here are some key takeaways: the cartel has kept demand growth unchanged for this year at 1.27 million bpd - with non-OECD countries accounting for 1.04 million bpd of that - but has lifted last year's demand growth by 65,000 bpd to +1.44 million bpd.

On the supply side, it has boosted its expectations for non-OPEC supply growth by 370,000 bpd from last month, up to 950,000 bpd, predominantly driven by U.S. shale production. It projects 820,000 bpd of supply growth from the U.S. this year.

(Click to enlarge) 

The charts below are from the actual OPEC report, showing OPEC's projection for the U.S., Canada and Brazil to lead supply growth higher this year, while Chinese output ebbs again:

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