• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 7 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 15 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 15 hours Why I Think Natural Gas is the Logical Future of Energy
  • 3 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 14 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 8 hours Get on Those Bicycles to Save the World
  • 12 hours Iraq war and Possible Lies
  • 1 day Can “Renewables” Dent the World’s need for Electricity?
  • 1 day Satellite Moons to Replace Streetlamps?!
  • 1 day Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 22 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 9 hours EU to Splash Billions on Battery Factories
  • 1 day Can the World Survive without Saudi Oil?
Alt Text

Are Energy Majors Under Threat From Big Tech?

Audi and Amazon have teamed…

Alt Text

Oil Prices Rise On Iran, Hurricane Outages

Oil prices recovered on Tuesday,…

Alt Text

Is There Too Much Light Crude On The Market?

Light crude typically sells at…

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

Trending Discussions

Supply, Demand Equilibrium Further Away Than Ever Before

Yesterday’s 2.6 million barrel build to crude stocks from the US weekly inventory report has has sucker-punched oil prices lower once more. A drop in refinery utilization – combined with imports popping above 8 million barrels per day for the first time since April – flip-flopped the expectation of a 2 million barrel draw into the reality of a solid build.

US crude inventories still kicking around 80-year highs (source: EIA)

As we charge towards refinery maintenance season, and a deeper one than seen in recent history, crude demand is set to wane into September. While refinery utilization on the four-week moving average remains a country mile above the range of recent years, the trend of deferring seasonal maintenance by some refiners is unlikely to carry through to this fall, especially given the costly reminder provided by the Whiting refinery outage last week. Related: Could This Innovation Pave The Way For An EV Revolution?

On the economic data front, German producer prices clawed their way out of deflationary conditions (MoM), while tales of retail sales in the UK came in shy of expectations, bucking the trend of recent positive data out of Blighty. Here in the US, weekly jobless claims came in a wee bit worse than expected at 277, 000, ticking higher for the fourth consecutive week. These collective overnight releases have Related: How Much Pressure Will Iran Put On Oil Prices?

done little to lift the mood in broader markets, as a blanket of bearishness has been laid across equity markets overnight, while government bonds across the board are being bought up like hot cakes.

While we’ve already discussed this week the detrimental impact that the current commodity rout is having on both OPEC and Latin America, today’s regional focus shifts to another key oil producer – that of Norway. Norway’s economy is closely tied to oil, given almost half of its exports relate to petroleum.

Hence, the latest statistics show that Norway’s economy is slowing to a standstill, with GDP at an anemic 0.2% last quarter (this is both seasonally adjusted, and excluding oil, gas and shipping).

In what is also rather fascinating news, Mexico’s finance ministry has announced it has bought options based on Maya and Brent crude oil prices to hedge 212 million barrels of its oil for next year at $49 a barrel. Mexico has historically made some astute decisions in the past. Last November it hedged its production for this year at $76.40, while in July 2008 it hedged its 2009 exposure at $70, essentially meaning its economy managed to dodge a financial crisis amid the great recession. Related: Is This The Best Play In U.S. Oil?

Finally, it isn’t only Saudi and Iraq within OPEC who continue to push oil onto the market undeterred; as I referenced this morning on CNBC, #ClipperData show Angola is exporting at its highest level since March, as is Nigeria:

 

By Matt Smith

More Top Reads From Oilprice.com:

 




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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