X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 4 hours America Makes Plans to Produce Needed Rare Earth Minerals Domestically
  • 1 day Texas Supply Chain Massacre
  • 7 hours U.S. Presidential Elections Status - Electoral Votes
  • 24 hours Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 1 day Former BP Exec "Biden not in war against oil" . . Really ?
  • 16 hours Here we go - again: plug-in hybrids cost motorists more than what they were told
  • 3 days Speaker Pelosi, "Tear Down This Wall" . . around Capital Building
  • 3 days Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 19 hours An exciting development in EV Aviation: Volocopter
Brazil’s Oil Industry Shakeup Could Be Devastating For Its Economy

Brazil’s Oil Industry Shakeup Could Be Devastating For Its Economy

President Bolsonaro’s decision to oust…

Venezuela Sees Oil Exports Rise Despite U.S. Sanctions

Venezuela Sees Oil Exports Rise Despite U.S. Sanctions

While Venezuela’s oil exports remain…

US Oil To The Rescue As Italy Runs Short On Libya/Iran Challenges

Libya’s oil disruptions would normally wreak havoc in Italy—one of Libya’s top oil consumers—but the United States is serving as a pinch hitter in the wake of civil unrest in the troubled African nation.

Trade flow data from Thomas Reuters and Kpler shows that Italy’s imports of US crude spiked as Libya struggled to ship oil under force majeure in recent months.

In June, Italy imported a record 4.93 million barrels of crude oil from the United States, or 165,000 barrels per day, according to Kpler. That represents a noteworthy increase to the 3.3 million barrels shipped from the US to Italy in May and 1.9 million barrels in April. Kpler predicts that 2.14 million barrels are set to ship from the US to Italy in July.

On the flip side, Libya’s shipments to Italy were 9.73 million barrels in May, followed by a drastic decrease in June to 3.45 million barrels.

Libya had reopened its eastern oil ports in mid-July after they had been shuttered for weeks, but within days, the NOC declared a force majeure on loadings from Zawiya, following an attack and an abduction of oil workers. Production was set to decline substantially as a result of the closure, but Ras Lanuf, Zuwetina, Hariga, and Es Sider have either resumed or are expected to resume shortly. Yesterday, reports surfaced that even more production capacity in Libya was expected to come online as other fields gear up for restart, including Waha and Elephant.

Related: Oil Investors Look To Utah For Long-Term Riches

Libya’s short shipments of oil come at a particularly bad time for Italy, who has also had to dial back imports of Iranian oil; another of Italy’s top oil suppliers. Trading sources in Italy who normally purchase Iranian crude oil told S&P Global Platts that August loading stems would likely be their last, as logistical concerns including financial, shipping, and insurance matters prove difficult for European refiners.

Libya’s shortcomings and Iran’s blacklisting are proving a boon for US oil, and may also be a boon for Iraq’s oil, which also offers a light grade.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • randy lessard on July 23 2018 said:
    If we are going to ween countries off Iran's oil, and ship us crude to cover the loss overseas can only mean one thing. Higher prices in the usa
  • Terry on July 22 2018 said:
    Africans fight over 'free stuff' but they don't make anything but babies, and fried food.
  • Geno Fazzoli on July 22 2018 said:
    US to the rescue to prevent the largest bad hair day in Italian history.
  • Pete Townsend on July 21 2018 said:
    Don't worry there is plenty to go around. Some people are making a mountain out of a mole hill. The US is very kind to step up to the plate and feed Italy the juice.

Leave a comment

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