OIL PRICE: ABOVE $53
REUTERS , BLOOMBERG , OILPRICE - Oil prices rose on Wednesday as strong global refining margins and the reopening of U.S. Gulf Coast refineries provided a more bullish outlook after sharp drops due to Storm Harvey.
Brent LCOc1 had gained 51 cents to $53.89 a barrel by 1356 GMT. U.S. West Texas Intermediate (WTI) crude futures Clc1 were up 45 cents at $49.54 a barrel.
"Prices are extending the momentum seen in the last few days due to a number of U.S. refineries restarting after Harvey," said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas.
"There were concerns over a big drop in crude demand but with refinery restarts or announcements of them ... we see that their infrastructure has been mostly preserved," he said.
Many refineries, pipelines and ports that were knocked out by Harvey 10 days ago are restarting.
On Tuesday, about 3.8 million barrels per day (bpd) of refining capacity, or 20 percent of the U.S. total, was shut. This compares with 4.2 million bpd at the height of the storm.
But traders remained wary of Hurricane Irma, rated the most powerful Category 5 storm and heading toward the Caribbean and Florida, raising concerns that it could knock out other refineries and cause more fuel shortages.
Around 250,000 bpd of refining capacity in the Dominican Republic and Cuba lies in the immediate path of Irma, Thomson Reuters Eikon data showed.
Fuel storage data on Wednesday from the American Petroleum Institute and on Thursday from the Energy Information Administration is expected to give a better view of the extent of Harvey's impact on U.S. fuel inventories. But analysts say it will take a few weeks more to get a complete picture.
There is also another tropical storm on Irma's heels in the Atlantic, and another one active in the Gulf of Mexico.
Longer-term, the oil industry outlook is for ample supplies and low prices as crude output remains high in the three biggest producing regions: Russia, the Middle East and North America.
Adding to the longer term bearishness, some Libyan production returned. The 280,000 bpd Sharara oilfield, the country's largest, was gradually restarting on Wednesday after the lifting of a pipeline blockade, Libyan oil sources said.
Russian Energy Minister Alexander Novak said on Wednesday he expected the 2018 Brent price be $45 to $55 a barrel. Kuwaiti oil minister Essam al-Marzouq forecast Brent would hover between $50 and $55 until the end of 2017.
|July, 16, 11:05:00|
|July, 16, 11:00:00|
|July, 16, 10:55:00|
|July, 16, 10:50:00|
|July, 16, 10:45:00|
|July, 16, 10:40:00|
AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.