This week’s biggest news – Saudi Aramco managed to restore most of its affected production faster than anticipated and by Wednesday (September 25) is only missing some 0.2-0.3mbpd of output capacity. This has had a calming effect on markets and crude prices edged lower as immediate geopolitical risks of a regional confrontation between Saudi Arabia and Iran faded. The start of the UN General Assembly also provided ample indicative signals – US President Donald Trump criticised Chinese trade practices, all the while ruling out military action against Iran, which in turn, opened up a bit towards the US on the advice of European leaders. With the impending release of the Stena Impero vessel, held by Iranian authorities since July 2019, almost everything seemed to nudge oil prices downward.
Thus, amidst mixed information on the US commercial crude inventories last week, the general trend is now a gradually declining one. As a consequence, global benchmark Dated Brent traded around $60.4-60.7 per barrel Wednesday afternoon, whilst WTI was assessed within the $55.6-55.9 per barrel interval.
1. Refinery Fire Adding Salt to Venezuela’s Injury
- Just when it seemed that Venezuela can heave a sigh of relief as the world’s attention moved away from Latin America, a fire at its 635kbpd Amuay refinery has put the country’s remaining gasoline production at risk.
- The fire destroyed the hydrodesulphurization unit…