Updated: oil falls 5% upon settlement, with geopolitical concerns calm

[yota691]

The start of the Iraq Energy Forum conference with a global presence

 

Side of the conference. "Economy News"

energy Economy News - Baghdad: Launched in Baghdad, the conference of the Iraq Energy Forum 2019, with the presence of a large global and Arab including OPEC. The conference bore the theme of “Economic Cooperation for Peace and Prosperity in the Middle East”, which will be held for four days at Al Rashid Hotel. The conference will include a speech by OPEC Secretary General Mohammad Barkindo and four sessions to discuss the energy sector in Iraq and the region. "The conference will discuss the challenges facing the oil sector in Iraq and the world," said Adnan al-Janabi, chairman of the Iraq Energy Forum.  Views: 75   Date Added: 14/09/2019

[yota691]

OPEC: Iraq continues to demonstrate its commitment to reduce production

 

OPEC Secretary General Mohammed Barkindo

energy Economy News - Baghdad: OPEC Secretary-General Mohammed Barkindo has welcomed Iraq's commitment to OPEC's decision to cut production. Barkindo said in his speech at the conference of the Iraq Energy Forum 2019, and attended by the "Economic News", that "Iraq is a resource-rich countries is an effective and influential element in OPEC and all its decisions are taken into account." He added that "can not implement Iraq's decisions without the presence of OPEC," noting that "OPEC is pleased to show Iraq its commitment to support system" rel="">support its decision, especially in reducing production." Views: 31   Date Added: 14/09/2019

[yota691]

The launch of the Iraq Energy Forum 2019

Release date:: 9/19/14 16:34 • 82 times read

BAGHDAD: The Iraq Energy Forum 2019, kicked off on Saturday, with the participation of a wide range of international companies specialized in the oil and energy sector.

 

A statement from the Ministry of Oil, received (Euphrates News) a copy of it, that "in the presence of Prime Minister's Deputy Prime Minister for Energy and Oil Minister Thamer Ghadban, and the Minister of Electricity Louay Khatib, water resources For the sake of peace and prosperity in the Middle East, the activities of the Iraq Energy Forum were launched at the Rashid International Hotel in Baghdad.
He added that "the Forum lasts for four days until Tuesday, 17/9/2019, with the presence of a large number of stakeholders in the field of energy in Iraq, the Middle East and the world, with the participation of a wide range of international companies specialized in this sector."
He continued, "where the forum began with a number of words to energy officials in Iraq and OPEC represented by Secretary-General Mohammed Barkindo, who reviewed the history of the organization, while praising the energy men in Iraq who were founders of it."
The Deputy Prime Minister stressed in his speech "the Prime Minister's interest in the energy sector (oil and electricity), and his efforts to develop this sector and work to resolve the electricity crisis in the country," noting "the importance of such forums, which aims to keep pace with global technological developments in the field of energy, and engage them within the plans implemented by Stakeholders in the country. "
The meeting also discussed investment and the role of the government in supporting investment companies and businessmen, and working to create an integrated investment environment to attract investors, the forum will also include the review of many research, workshops and seminars, which will be framed as a positive motivation Iraq with proposals, visions and constructive ideas. "
He added, "On the sidelines of the forum, the Ministry of Electricity entered into a contract with the German company Siemens to build and rehabilitate the first and second Baiji gas stations."

[6ly410]

Ghadban: Oil resources constitute more than 90% of the budget allocations

Economie

2019-09-14 | 03:13

https://www.alsumaria.tv/news/اقتصاد/318265/الغضبان-موارد-النفط-تشكل-اكثر-من-90-من-التخصيصات-ا

 

 

Oil Minister Thamer Ghadhban said on Saturday that oil resources constitute more than 90% of the budget allocations, noting that the government is working to reform the work environment.

Ghadhban said in a speech at the International Energy Conference held in Baghdad and attended by Alsumaria News, that "the oil sector is known as the main engine of the Iraqi economy, as it is because of the specificity of the Iraqi economy is the main supplier of financial resources," noting that "oil resources constitute more than 90% of the budget allocations annually.

 

 

Ghadhban added that "the government pays great attention to the oil sector and is keen that this sector is witnessing an ongoing activity as well as to be subject to clear policies aimed at Iraq to remain a major producer of oil and then gas and oil to provide the needs of the citizen's electricity."

He continued, "This sector will witness a series of changes, reforms and restructuring so that the federal ministries are an organization keen on the preparation of policies and legislation for oil companies to invest in production and commercial activity."

 

He pointed out that "the government is keen to develop and reform the work environment in Iraq, especially if we know that there are a lot of old procedures and administrative routine are still working on them."

 

Edited September 14, 2019 by 6ly410

[6ly410]

Saleh: Iraq is keen to abide by OPEC resolutions

Local 09:32 - 14/09/2019

https://www.mawazin.net/Details.aspx?jimare=64821

BAGHDAD - Mawazine News

President of the Republic Barham Saleh, Iraq's keenness to abide by the decisions of OPEC.
The President of the Republic in a statement, "President Barham Saleh received the Secretary General of the Organization of Petroleum Exporting Countries (OPEC) Mohammed Barkindo, and confirmed Iraq's support for the policy of stability of global oil markets to achieve the interests of producing and consuming countries."

 

Saleh pointed out, according to the statement that "Iraq is keen to abide by the decisions of the Organization as an active member, and in support of its policies aimed at achieving balance in oil markets," stressing "the need for joint collective action of OPEC countries to stop the fluctuation of production, and maintain the agreed rates." .

In turn, Barkindo praised "the role played by Iraq in the organization and its commitment to its decisions," stressing that "Iraq has a prominent role in the stability of oil markets, and enjoys an important place and high appreciation of OPEC members."

is over

Edited September 14, 2019 by 6ly410

[6ly410]

Halbusi to OPEC President: determined to rehabilitate oil facilities and increase production

21:24 - 14/09/2019

https://www.almaalomah.com/2019/09/14/428877/

Information / Baghdad

Speaker of the House of Representatives Mohammed Halbousi, on Saturday, received the President of the Organization of Petroleum Exporting Countries (OPEC) Mohammed Barkindo and his delegation, which is visiting Baghdad on the sidelines of the energy conference.

Halbousi said in a statement received / information /, " Iraq is keen to stabilize oil prices in accordance with the directions of the organization," noting that "the Iraqi oil installations, despite being damaged as a result of wars; the Iraqi government is determined to rehabilitate and increase production," stressing the support of the Council Representatives of the Iraqi oil sector and its development.

He added that “it is proud that OPEC celebrates its 60th anniversary next year in Baghdad and in the People's Hall, which began in 1960, calling on the organization to help Iraq achieve higher production rates to achieve a high level of development and reconstruction, after the victory over ISIS. The terrorist in a long war has cost Iraq bloodshed and material losses.

For his part, Barkindo expressed his happiness for the security development and achieve peace and development in Iraq , praising his role as a founding member of the organization, pointing to the role of the House of Representatives in maintaining political stability and support the oil sector with legislation that helps him to regain his role as a key member among the oil producing and exporting countries in the world. Finished 25 N

[6ly410]

Saleh to (OPEC): Iraq is keen to abide by the decisions of the Organization

Release date:: 9/19/2019 21:22 • 92 read times

http://alforatnews.com/modules/news/article.php?storyid=211325

(Baghdad: Euphrates News) President of the Republic Barham Saleh, Iraq's keenness to abide by the decisions of the Organization (OPEC).

This came during a meeting, on Saturday, Secretary General of the Organization of Petroleum Exporting Countries (OPEC) Mohammed Barkindo.
A statement from his office, which received (Euphrates News) a copy of it that "was discussed during the meeting the preparation of supplies to celebrate next year (60) anniversary of the founding of the organization in Baghdad in 1960."
Saleh pointed out during the meeting to "Iraq's keenness to abide by the decisions of the Organization as an active member, and supportive of its policies aimed at achieving balance in oil markets," stressing "the need for joint collective action of OPEC countries to stop the fluctuation of production, and maintain the agreed rates."
In turn, Barkindo praised the role played by Iraq in the organization and its commitment to its decisions, stressing that "Iraq has a prominent role in the stability of oil markets, and enjoys an important position and high appreciation of OPEC members."

[yota691]

Analysis .. OPEC needs a miracle to increase oil prices

 15 September 2019 04:46 AM
Edit: Noha copper

Direct: It is not a secret. OPEC has confined itself to relying solely on controlling supply to be able to change international oil prices, but now prices are falling while it has nothing to do with supply.

An analysis published by Oil Price suggests that when OPEC made its first announcement that its members agreed to cap their production in order to reverse low crude prices, it succeeded in delivering it.

Prices have fallen to their lowest level in more than a decade due to the boom in shale oil production, and OPEC's attempts to stop this by achieving the highest flow of crude.

But when OPEC announced that it would cut supplies, prices recovered and provided more comfort to oil-dependent economies in the Gulf region and provided relief to oil producers around the world, including shale oil producers in the United States.

Shale oil production has recovered to the point that US crude production is now at an all-time high, and last year the United States became the largest oil producer.

At the same time, OPEC and its allies, led by Russia, again decided to cut production, yet this reduction does not prove successful in supporting prices.

Prices have remained low despite some short-term occasional rally, and although Brent and Nymex are higher than before the cuts, Brent is much lower than the Organization's largest crude producer needs.

The reason that these cuts do not play their part is that market movers are not watching the cut, but instead watching the tariff match between Washington and Beijing, a game that could hurt global oil demand. Harm prices.

Hima Croft, head of commodity strategy at RBC, says OPEC's current burden is to show it continues to have the right tools to tighten control over low prices under White House policy.

"It may be proven that improving the real market is easier than overcoming doubts about the ultimate effectiveness of its strategy in Donald Trump's era," Croft said in a memo to CNBC.

Jason Lavis, a partner in the oil industry platform Drills, said the recent sharp drop in oil prices from 2014 to 2016 showed OPEC's now low impact on prices.

He added: "While OPEC announced production cuts, the US shale oil production boom has easily thwarted any upward pressure in prices, and the current sanctions on Iran and Venezuela continue to reduce the impact of OPEC."

When OPEC and its allies met in December, they agreed to cut output by 1.2 million barrels per day and agreed in July to extend the cuts until the end of this year or until the beginning of 2020.

Indeed, OPEC production is now down by more than 1.2 million barrels per day. US sanctions against Iran and Venezuela are severely hurting their production rates. Yet Brent crude is stubbornly hovering around $ 60 a barrel.

The fears of a trade war merged with the continued rise in US production to form a "bad trick" against OPEC.

The only way to raise prices seems to be a sharp reduction in production, and this is the only logical way, given the fact that we have previously seen the failure of the maximum production strategy.

However, further cuts in production levels could mean market share losses , and any price changes may not be large enough to justify those losses.

In this context, it is highly doubtful that Russia and OPEC members agree to further reduce their oil production.

That may mean that OPEC will only have to sit down to watch the developments of the trade war and hope for a trade deal that could be a miracle to push prices up.

 

[Pitcher]

Brent oil futures are up 19%,  around 70 after the SA attack.

WTI up about 12%,  around 63

Gold and Silver are also up.  

 

The attack was devastating but SA will get back on line quickly if there are no more attacks.  If there are more attacks I suspect all hell will break out in the ME.  SA will have to respond to this and it could ugly quick.  I’m going to be up early trading what I see.  I find it interesting that oil was trending up last week.  You just hate to believe this is a red flag event but it wouldn’t surprise me.  I also find it a little suspect this happened days after Bolton resigned/fired.  

 

Saudi officials refuse to blame Iran at present time. 

One last thing.  Expect gas at the pump to go up at least .25-.50, and that’s if there are no more attacks.  Stay tuned, this ME situation will be captivating!!!!!!

[jeepguy]

Around here  , there was speculation that the  gas prices would drop  under 2.oo 

(Would something like this  push  Iraq to  put real value on dinar  ? ) 

Can only hope it would put  10 cent  on her

[Pitcher]

I filled my vehicle yesterday in South Houston for 1.99 a gal for regular.  Near my home in North Houston it was 2.35 today.  

 

Current Oil Prices

 

Brent, 68.40

WTI, 61.10

 

For reference the price of oil doubled during the Gulf War.  

This attack is a bigger disruption than the Iraqi attack on Kuwait.  The Saudi’s have a 1 month supply of spare oil so if there are no more attacks and the plant can come back on line in the next month we shouldn’t get to big of a supply distrupution 

[Pitcher]

I forgot to add to the last post.  

 

China imports a majority of its oil from Saudi Arabia.  

No doubt about it US Oil Companies will benefit from this attack in the short term. 

[yota691]

Iraq confirms its suppor t for the policy of stabilizing markets

Date posted: 16/09/2019

 

 

 

Iraqi President Barham Saleh confirmed on Saturday his country's support for the policy of stabilizing the world oil markets in a way that achieves the interests of producing and consuming countries.
The President of the Republic in a statement received by Alsumaria News, that «President Barham Saleh received the Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Mohammed Barkindo, and confirmed Iraq's support for the policy of stability of global oil markets to achieve the interests of producing and consuming countries».

 

Saleh pointed out, according to the statement that «Iraq is keen to abide by the decisions of the Organization as an active member, and in support of its policies aimed at achieving balance in the oil markets».
(Dpa)

 

[yota691]

OPEC paints a grim picture for 2020

Economie

2019-09-12 | 02:33

 

 

1,070 views

OPEC today lowered its forecast for global oil demand growth in 2020 due to an economic slowdown, in speculation the organization says it highlights the importance of ongoing efforts to prevent a new glut.

In a monthly report, the Organization of the Petroleum Exporting Countries trimmed its forecast for global oil demand growth next year by 60,000 bpd to 1.08 million bpd, suggesting the market could see a surplus.

In its report, OPEC trimmed its forecast for global economic growth in 2020 to 3.1% from 3.2%.

 

 

The outlook is weaker in light of the trade dispute between the United States and China, and Britain's exit from the European Union.

The report indicates that 2020 will see a supply surplus of 340 thousand barrels per day if OPEC continued production at the rate of August and the rest of the factors remain unchanged, more than the surplus expected in the report issued last month.

[yota691]

The biggest jump in oil prices in 30 years

Release date:: 2019/17 17:34 • 257 times read

Oil closed up nearly 15% on Monday, with Brent recording the biggest jump in 30 years, in record volumes, after an attack on two Saudi crude facilities cut the kingdom's output by half, stoking fears of retaliation in the Middle East.

Brent crude futures were set at $ 69.02 a barrel, up $ 8.80, or 14.6%, the biggest one-day percentage increase since at least 1988.
U.S. West Texas Intermediate (WTI) crude futures closed at $ 62.90 a barrel, up $ 8.05, or 14.7%, in the biggest one-day percentage gain since December 2008.
Volume also rose, surpassing Brent's two million lots, in record high daily volume, it said. Rebecca Mitchell is spokesperson for the Intercontinental Exchange.
"The attack on the Saudi oil facility created a shock and a surprise to the market ... it was more focused on demand than supply," said Tony Hedrick, energy market analyst at CHS Hedging.
He added, "I think that a sudden change occurred in terms of supply expectations, which was taken by surprise many of their positions were owed, and encouraged the formation of more creditor centers." is over

[yota691]

Oil prices drop as anticipation of Aramco attack

 17 September 2019 11:06 AM
Mubasher : Oil prices fell during Tuesday's trading with the evaluation of attacks on Saudi Aramco, which caused widespread gains in crude prices yesterday.

Brent crude futures for November delivery were down 0.3 percent at $ 68.80 a barrel by 7:50 am GMT.

US crude for October delivery was down 0.9 percent at $ 62.32 a barrel.

In the settlement of yesterday's session, the price of futures contracts for "Nymex" US crude for October delivery by about 14.7 percent to $ 62.90 a barrel, the highest level for the most active contract since May 21 last.

On Saturday, Saudi Aramco came under attack, which caused a fire in the company's plants, halting about 50 percent of production capacity.

Bush accused Iran of being  responsible for weekend attacks on Saudi Aramco.

Nevertheless, Donald Trump stressed that the United States does not want war with Iran but is more willing to do so than any other country.

The American Petroleum Institute is due to release later today preliminary inventory data for last week.

 

[bkeiller]

The Iranians are trying to bait Saudi Arabia into a war and pump the oil prices, so they can shake down their Chinese buyers. They are also baiting Israel, the US and Europe--the latter allowing, almost inviting, themselves to be blackmailed. But, with oil prices stabilizing and reasonable folks seeing Iran for the troublemaker it is, the tide of opinions are likely turning against Iran.

I wonder how much longer this klepto-theocracy can hold out and how desperate will they get?

Feeling bad for regular folks in the ME who have to put up with this medieval BS.

[Pitcher]

https://oilprice.com/Energy/Crude-Oil/Saudi-Oil-Outage-Impact-Not-As-Bad-As-Predicted.html
 

Saudi Oil Outage Impact Not As Bad As Predicted

By Nick Cunningham - Sep 17, 2019, 6:00 PM CDT

Oil prices have gyrated this week on conflicting reports and predictions regarding the restoration of operations at the damaged Abqaiq processing facility in Saudi Arabia. The largest disruption in oil market history led to a 15 percent price gain on Monday, but prices opened up sharply lower on Tuesday after Reuters reported that operations would resume much quicker than expected.

The outage at Abqaiq is not just a problem because of the immediate impact on production, but also because it takes much of the world’s spare capacity offline. According to Bloomberg, the most optimistic assessment puts global spare capacity at 3.9 million barrels per day (mb/d), but that includes half a million barrels of daily capacity from idled Neutral Zone oil fields, plus some optimistic assumptions about the usability of spare capacity elsewhere.

In reality, spare capacity would be incredibly thin if Abqaiq remains offline for an extended period of time. Bloomberg notes that Saudi Arabia has about 1.67 mb/d of surplus capacity, but some of that would likely need to be processed at Abqaiq, leaving it temporarily unusable. Those details are kept secret.

While a half dozen or so other countries have some additional ability to add production in a pinch (mainly Saudi Arabia’s Gulf State allies), much of the world’s spare capacity is concentrated in Saudi Arabia.

Aside from idled production, strategic petroleum reserves (SPR) could also be thrown onto the market to cover for an outage. The U.S. has the world’s largest SPR, and it has been the linchpin of American energy security strategy for several decades. President Trump said that he authorized the use of the SPR in the event that supply was needed to cover for Abqaiq.

“The Secretary has been briefed on today’s drone attack in Saudi Arabia and stands ready to deploy resources from the Strategic Petroleum Oil Reserves (SPRO) if necessary to offset any disruptions to oil markets as a result of this act of aggression,” DOE Press Secretary, Shaylyn Hynes said in a statement on Saturday. Related: U.S. And China Could Close ‘Mini Trade Deal’

However, there are problems with the SPR. As Bloomberg reports, the state of the storage facilities that comprise America’s SPR is troubling. A 2016 report from the Department of Energy detailed the decrepit condition at some sites. “A large portion of the SPR’s surface infrastructure has exceeded its design life and is in need of life extension,” DOE said in the report. “This need for infrastructure life extension, coupled with increasing deferments of major maintenance projects, has resulted in an increasing number of significant equipment failures that have adversely impacted the Reserve’s operational readiness capability.”

“Investing in a second Life Extension project is essential to ensure the long-term integrity of SPR assets and the ability of the program to carry out its mission,” DOE concluded.

Also, the SPR might not be able to withdraw as much oil as it says it can, due to the rerouting of pipelines along the Gulf Coast in recent years, Jason Bordoff of Columbia University told Bloomberg.

Despite those warnings, little has been done. Instead, feeling confident (perhaps overly confident) due to the surge of oil production from shale, the U.S. Congress has deprioritized the SPR over the past half-decade or so. The crash in prices in 2014, and the rapidly growing supply from Texas and North Dakota, greatly influenced the decision to sell off oil stocks from the SPR.

Congress has authorized multiple sales of oil from the reserve, and not for some security concern, as the SPR was intended, but rather for budgetary reasons. Congress decided to liquidate parts of the SPR to raise cash. Related: A Fracking Ban Will Never Happen

The U.S. SPR used to hold nearly 700 million barrels of oil, but now holds 630 million barrels. The agency recently sold 10 million barrels from the reserve as part of the previously authorized sale schedule.

It all might be a moot point. Saudi Arabia’s energy minister held a highly-anticipated press conference on Tuesday, updating the world on the damage at Abqaiq. He struck a confident tone, stating that half of the disrupted output is already back online and that repair work would be completed by the end of the month. In the meantime, the country would use inventories to keep export flows continuing as usual.

If this bears out, the U.S. SPR might not be needed after all. Oil prices fell sharply on Tuesday.

However, a lot of uncertainty remains. The U.S. Defense Department plans to release details that allegedly prove that Iran was behind the attack. President Trump said on Monday that he didn’t want war with Iran, but retaliation is not off the table. This story is not over.

[Pitcher]

https://oilprice.com/Latest-Energy-News/World-News/Oil-Continues-To-Plunge-On-Bearish-Crude-Inventory-Data.html
 

Oil Continues To Plunge On Bearish Crude Inventory Data

By Julianne Geiger - Sep 17, 2019, 3:49 PM CDT

The American Petroleum Institute (API) has estimated a surprise crude oil inventory build of 592,000 barrels for the week ending September 12, compared to analyst expectations of a 2.889-million barrel draw.

Last week saw a large draw in crude oil inventories of 7.227 million barrels, according to API data. The EIA estimated that week that there was a slightly smaller inventory draw instead, of 6.9 million barrels.

After today’s inventory move, the net draw for the year is 25.31 million barrels for the 38-week reporting period so far, using API data.

Oil prices were trading down sharply on Tuesday prior to the data release, after anonymous Reuters sources gave a more optimistic timeline for Saudi Arabia’s oil production to return to normal within weeks, rather than within months. Oil prices had risen by 20% on Monday after oil giant Saudi Aramco suffered widespread oil production outages in the wake of an airstrike that targeted critical oil infrastructure.

At 11:35am EDT, WTI was trading down $3.44 (-5.47%) at $59.46—a $1.50 rise from this time last week. Brent was trading down $3.69 (-5.45%) at $63.99, or a $1.00 per barrel increase over last week’s levels.  

The API this week reported a build of 1.599 million barrels of gasoline for week ending September 12. Analysts predicted a draw in gasoline inventories of 1.033 barrels for the week.

Distillate inventories rose by 1.998 million barrels for the week, while inventories at Cushing fell by 846,000 barrels.

US crude oil production as estimated by the Energy Information Administration showed that production for the week ending September 6 stayed at 12.4 million bpdmark, down just 100,000 bpd from its all-time high.

At 4:42pm EDT, WTI was trading at $59.01, while Brent was trading at $63.21.

[coorslite21]

17 hours ago, bkeiller said:

The Iranians are trying to bait Saudi Arabia into a war and pump the oil prices, so they can shake down their Chinese buyers. They are also baiting Israel, the US and Europe--the latter allowing, almost inviting, themselves to be blackmailed. But, with oil prices stabilizing and reasonable folks seeing Iran for the troublemaker it is, the tide of opinions are likely turning against Iran.

I wonder how much longer this klepto-theocracy can hold out and how desperate will they get?

Feeling bad for regular folks in the ME who have to put up with this medieval BS.

Perfectly stated!

CL

[yota691]

Oil falls after consumers are reassured by the return of Saudi production

 

Oil refinery

energy Economy News - Baghdad: Oil prices in the global market fell on Wednesday by 50 cents after consumers were assured that Saudi production would return to normal as well as the non-compliance of some countries with the OPEC + production cut agreement  and increasing shale oil production. At 2:30 pm Iraq time, Brent oil fell 0.73%, or 50 cents, to $ 64.05 a barrel, while WTI fell 0.68% to $ 58.7. International reports indicate that oil prices will return to less than $ 60 after Saudi Arabia recovers all of its production lost during the bombing of Aramco. The non-compliance of Nigeria in the OPEC + agreement, as well as the reassurance of consumers from the return of Saudi production during the next month to the previous one in addition to shale oil will lead to lower oil prices. Brent crude opened higher this morning at $ 64.55 a barrel. Views: 18   Date Added: 18/09/2019

[yota691]

Oil plunges 6% with Saudi Energy Minister's statement: production is fully back

Release date:: 2019/17 23:43 • 206 times read

Oil prices fell nearly 6 percent on Tuesday after Saudi Arabia's energy minister said the kingdom had regained full oil production after an attack over the weekend that halted 5 percent of world crude production.

Saturday's attacks raised the risk of a big supply shock in a market dominated in recent months by demand worries and slowing global growth. Oil rose 20 percent during Monday's trading.
At a news conference on Monday, Saudi Energy Minister Prince Abdulaziz bin Salman said the kingdom would continue to supply customers with full quantities of crude this month. Oil production will reach 9.89 million bpd in October, he said.
Brent crude futures fell $ 4.47, or 6.5 percent, to settle at $ 64.55 a barrel. US West Texas Intermediate (WTI) crude futures fell $ 3.56, or 5.7 percent, to close at $ 59.34 a barrel.
Brent Hui was more than seven percent at the press conference.
`` The latest news means we are not going to rush to adjust our forecast for the $ 60 oil price by the end of 2019, '' Caroline Bean, chief commodities economist at Capital Economics, said in a note. This could mean that we will have to consistently take into account a higher risk premium in our price forecasts. "

[yota691]

Oil prices continue to fall

Economy | 12:21 - 19/09/2019

 

 

Follow-up Mawazine News

Oil prices fell about 2 percent on Wednesday, extending losses from the previous session.
Brent crude futures ended the session down 95 cents, or 1.5 percent, at $ 63.60 a barrel.
US West Texas Intermediate (WTI) crude futures fell $ 1.23, or 2.1 percent, to close at $ 58.11 a barrel.
Data from the US Energy Information Administration showed that crude inventories in the United States increased by 1.1 million barrels last week, while analysts had expected a decline of 2.5 million barrels.
However, crude inventories at the futures delivery point in Cushing, Oklahoma, fell for the 11th consecutive week, the longest decline since August 2018.
Oil has also come under pressure from the US Federal Reserve's decision to cut interest rates by a quarter percentage point for the second time this year, pushing the dollar index higher.
A stronger dollar would make commodities priced in US currency, such as oil, more expensive for holders of other currencies.
Oil prices tumbled 6 percent on Tuesday after Saudi Arabia's energy minister said the kingdom had restored oil supplies to its customers to pre-attack levels by withdrawing stocks. Saturday's attacks effectively halted 5 percent of world oil production and pushed prices up to 15 percent on Monday.

[Pitcher]

https://oilprice.com/Geopolitics/Middle-East/Oil-Prices-Up-As-Iran-Prepares-For-All-Out-War.html
 

Oil Prices Up As Iran Prepares For "All Out War"

By Tsvetana Paraskova - Sep 19, 2019, 11:00 AM CDT

An American or Saudi military strike on Iran because of the weekend attacks on Saudi oil infrastructure would result in an “all-out-war,” Iran’s Foreign Minister Javad Zarif told CNN in an exclusive interview on Thursday.

“I’m making a very serious statement that we don’t want war, we don’t want to engage in a military confrontation, we believe that a military confrontation based on deception is awful,” Zarif said, adding “But we won’t blink to defend our territory.”

On Saturday, the Abqaiq facility and the Khurais oil field in Saudi Arabia were hit by attacks, which resulted in the temporary suspension of 5.7 million bpd of Saudi Arabia’s crude oil production, or around 5 percent of global daily oil supply.

U.S. President Donald Trump, Secretary of State Mike Pompeo, and Energy Secretary Rick Perry all blamed Iran for the attack despite a statement from the Iran-affiliated Houthi rebels in Yemen who claimed responsibility for the attacks.

Referring to the attacks and the U.S. claim that they came from Iranian territory, Zarif told CNN:

“They are making that up, why do they want to make that up that it [attack on Saudi oil infrastructure] was from Iranian territory,” noting that it was the Yemenis who claimed responsibility for the attack.

U.S. Secretary of State Mike Pompeo met with Saudi Crown Prince Mohammed bin Salman on Wednesday to discuss the attacks on the vital Saudi oil facilities.

“The U.S. stands with #SaudiArabia and supports its right to defend itself. The Iranian regime’s threatening behavior will not be tolerated,” Secretary Pompeo tweeted after the meeting.

On Thursday, Iran’s Zarif tweeted “Remnants of #B_Team (+ambitious allies) try to deceive @realdonaldtrump into war. For their own sake, they should pray that they won’t get what they seek.”

Speaking to CNN, Zarif rejected the possibility of negotiations with the U.S. unless Iran receives full sanctions relief.   

[Pitcher]

https://oilprice.com/Energy/Energy-General/Catastrophic-Flooding-Threatens-Heart-Of-Texas-Oil-Industry.html
 

‘’Catastrophic Flooding’’ Threatens Heart Of Texas Oil Industry

By Nick Cunningham - Sep 19, 2019, 6:00 PM CDT

Flooding from a tropical storm hit the Houston area on Thursday, with some calling the situation worse than Hurricane Harvey.

Heavy rainfall inundated the Texas coast, flooding Houston and Beaumont, home to massive oil refining, petrochemical and export facilities. The storm was downgraded to just a tropical depression, but those classifications only measure wind speed. The real threat from Imelda was “major, catastrophic flooding,” according to the National Weather Service.

“Extremely persistent thunderstorms” created the potential for 6 to 12 inches of rain, with higher levels in certain areas. “Storm total rainfall could be in excess of two feet for some areas before the weather finally begins to improve!” the NWS said in a notice. The forecast predicted that through Friday, some parts could see rain reach as high as 25 to 35 inches.

But the Texas Department of Transportation said on Thursday that 41 inches of rain had already hit the area between Beaumont and the town of Winnie (between Beaumont and Houston).

The sudden and rapid flooding of the area caught many by surprise, with thousands of people trapped in their homes and cars. Texas Gov. Greg Abbott said that the floods have “caused widespread and severe property damage and threatens loss of life.” He declared a state of disaster across 13 counties. The slow-moving nature of the storm meant that intense rain continued to pummel the region.

The intense flooding echoes the 2017 catastrophe from Hurricane Harvey, which submerged Houston with 50 inches of rain. In fact, some people said current flooding conditions are even worse. “What I'm sitting in right now makes Harvey look like a little thunderstorm,” Chambers County Sheriff Brian Hawthorne told ABC13, a local ABC affiliate. “It's dire out here. I'm fearful for this community right now.”

Hurricane Harvey left widespread destruction in its wake, including to a string of oil refineries and petrochemical complexes that dot the Texas and Louisiana Coast. It was the most powerful hurricane to hit Texas in decades and dumped a year’s worth of rain on the Houston area in just a few days. Nearly 4 million barrels per day of refining capacity was knocked offline, with several facilities taking weeks to recover. WTI prices plunged as crude oil became trapped, left unprocessed and with nowhere to go.

Disruptions from Tropical Depression Imelda won’t rival those of Hurricane Harvey, but heavy industry has indeed been affected.

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ExxonMobil said on Thursday that it was shutting downits 370,000-bpd Beaumont, Texas refinery because of flooding. “Exxon Mobil's Beaumont refinery and chemical complex is conducting a preliminary assessment to determine the impact of the storm,” an Exxon spokesman said. “The Beaumont chemical plant has completed a safe and systematic shutdown of its units.”

Other refineries continued to operate normally. Valero said its Port Arthur refinery did not see disruptions.

The outage will likely be only temporary, and energy markets probably won’t skip a beat, with focus rightly concentrated on the Middle East. But the cleanup on the Texas coast for ordinary people will be more grueling, especially since some people only recently rebounded from the damage of Hurricane Harvey.

More importantly, it is a reminder of the vulnerability of the U.S. energy complex, much of which is concentrated along the Texas and Louisiana coast. Climate change is bringing more intense storms to the region, putting more oil and refining assets at risk.

The industry is only doubling down on investments in the area. Billions of dollars are being funneled into refineries, ethane crackers and plastics manufacturing, storage tanks and export facilities. For instance, ExxonMobil has a 10-year, $20 billion “Growing the Gulf” campaign, which consists of 11 facilities. Earlier this year, Exxon and Qatar gave the greenlight for a $10 billion LNG export facility in Sabine Pass, Texas. Major crude oil export terminals are also in the works, seeking to double U.S. oil export capacity in just a few years.

The odds are rising that in any given year, they will be threatened by severe weather. It’s rather striking that a run-of-the mill tropical depression led to catastrophic flooding in Houston this week, and forced the temporary shutdown of Exxon’s massive Beaumont refinery. It’s the kind of story that is increasingly moving from the “freak event” category and into the realm of an annual occurrence.