• 16 hours Shell Oil Trading Head Steps Down After 29 Years
  • 20 hours Higher Oil Prices Reduce North American Oil Bankruptcies
  • 22 hours Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 23 hours $1.6 Billion Canadian-US Hydropower Project Approved
  • 1 day Venezuela Officially In Default
  • 1 day Iran Prepares To Export LNG To Boost Trade Relations
  • 1 day Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 1 day Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 2 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 4 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Alt Text

Is $60 Oil Too Tempting For OPEC?

As oil prices gradually increase…

Alt Text

Can WTI Hit $70 In 2018?

Most analysts assume that U.S.…

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 Rises As Bullish Sentiment In Markets Persists

Oil rig

Oil prices are moving back toward the top of their recent trading range, looking to muster a test of resistance once more. As positivity abounds amid new intraday record highs for U.S. equity markets, hark, here are five things to consider in oil markets today:

1) There were a couple of things to note from this week's monthly release from the EIA, the Short Term Energy Outlook (STEO). One is an upward adjustment to both Chinese oil consumption and supply, as well as the tweaking of some other consumption estimates for other non-OECD countries.

The result of which has lead to a tightening in its market expectations; rather than stock builds over the next few quarters, it now views the market to be largely in balance.

(Click to enlarge)

2) The report also references the start-up of U.S. crude exports from Occidental's Ingleside terminal, which kicked off late last year. Producers in the Midland region of West Texas are able to ship crude to Corpus Christi and the export terminal via the Cactus pipeline - bypassing the pipeline crossroads of the world that is Cushing.

This development has meant that the price of WTI Midland has strengthened versus similar grades at other delivery hubs. This can be seen in the chart below, with WTI Midland reaching parity with LLS (Light Louisiana Sweet) prices in recent months, while moving to a premium versus WTI Cushing.

(Click to enlarge)

We can see from our ClipperData that the Ingleside terminal has ramped up loadings since starting exports in November. So far, we have seen twelve loadings, totaling over 8 million barrels, heading as close as Canada and the Caribbean, to as far away as China.

(Click to enlarge)

3) The STEO also highlighted the fact that gasoline crack spreads on the U.S. Gulf Coast are stronger than those seen for New York Harbor-based Rbob, as rising exports buoy margins amid modest demand. In fact, U.S. Gulf Coast gasoline crack spreads have risen to a record high for the month of January, as U.S. Gulf gasoline exports continue to hold above 1 million barrels per day.

(Click to enlarge)

4) We can see the strength from gasoline exports in our ClipperData. On a monthly basis, they climbed to the highest level on our records in December at over 1.3mn bpd. The top five destinations accounted for 62 percent of exports last year, up a couple of percent on the year prior. Related: Iranian Oil Will Not Be Stopped By Trump

All five of the leading destinations are in fairly close proximity (although number six, Japan, is not). December's spike was driven by both Mexico and Brazil, who received the highest monthly volume of gasoline on our records.

(Click to enlarge)

5) We've been on a bit of a renewable kick this week, looking at long-term global forecasts, as well progress in Germany. Today we take a look at wind power in Europe, as installed capacity for it passed coal for the first time ever last year.

As more wind power was installed than any other form of energy, and coal plants have been decommissioned, wind has blown by (see what I did there?) coal capacity. According to WindEurope, investment in wind turbines grew to 27.5 billion last year, up 5 percent on the prior year.

Nonetheless, due to the intermittent nature of wind power, coal still maintains a larger share in total power generation.

(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