Oil Daily | Libya's Sharara Outage, Rising Oil Prices Amid U.S. Recovery, OPEC Cuts, and Russian Exports
Friday, Aug 9, 2024 4:00 am ET
【Global Oil Supply and Demand】
Favorable U.S. unemployment data and a recovery in the stock market have eased recessionary fears, supporting oil demand. Meanwhile, geopolitical uncertainties and Libya's production outage at its largest oil field have contributed to rising oil prices. The Energy Information Administration forecasts a drawdown in global oil inventories due to OPEC production cuts.
Geopolitical tensions and force majeure at Libya’s largest oil field, Sharara, have countered weak oil demand narratives from China. Global oil inventories are projected to decrease by 800,000 barrels per day in the latter half of the year, with production growth outside of OPEC expected to be strong.
Malaysia’s state energy firm Petronas has asked buyers to defer LNG cargo loadings due to operational issues at the Bintulu LNG Complex. The deferment could put upward pressure on Asian LNG prices, as demand in Asia remains strong.
Cheniere Energy reported a 36% decline in Q2 earnings due to lower margins on delivered LNG cargoes and moderating international gas prices. Despite this, the company raised its full-year guidance for consolidated adjusted EBITDA and distributable free cash flow.
Marathon Petroleum posted higher-than-expected Q2 earnings despite lower refining margins due to weaker demand and increased renewable fuel supply. High throughput and strong midstream performance helped offset margin pressure.
【Oil-Producing Countries Dynamics】
Libya's National Oil Corporation declared force majeure at the Sharara oilfield due to protests, halting production at the country's largest field. The Sharara field has a history of shutdowns prompted by political and military conflicts, complicating plans to boost production capacity.
Just after Libya reduced production at the Sharara field, the Libyan Prosecutor’s Office ordered the arrest of the oil minister on corruption charges. This follows months of controversy and dual leadership, leaving the country unclear about its actual oil minister.
Several Western insurers have provided coverage for tankers carrying Russian oil, despite sanctions. This has allowed Russian crude exports to continue, with Russian, Chinese, and Indian insurers stepping in where Western companies hesitated.
【Latest Oil Policies】
The U.S. oil demand outlook improved with better-than-expected unemployment figures and a recovering stock market, reducing some recessionary fears.
【Industry News】
Libya's National Oil Corporation declared force majeure at the Sharara oilfield due to protests, halting production at the country's largest field. The Sharara field has a history of shutdowns prompted by political and military conflicts, complicating plans to boost production capacity.
The largest Japanese oil and gas explorer, Inpex, reported a decline in first-half net profit but has decided to significantly boost shareholder returns. The company launched a new initiative to strengthen shareholder returns and expects to set a record-high payout ratio.
Harbour Energy returned to profitability in the first half of 2024 despite a dip in revenue and free cash flow. The company improved its production guidance and made progress on a significant acquisition that will diversify its portfolio.
ChargePoint Holdings unveiled a new EV connector solution, Omni Port, that combines the most common connector types into one port, eliminating the need for adapters. This solution aims to enhance the convenience of EV charging and support wider adoption of electric vehicles.
【Company News】
Murphy Oil Corporation posted solid Q2 2024 results with adjusted net earnings beating estimates, though revenue slightly missed expectations. The company reduced expenses and debt, increased its share repurchase authorization, and maintained its production and capital expenditure guidance.
Cheniere Energy reported a 36% decline in Q2 earnings due to lower margins on delivered LNG cargoes and moderating international gas prices. Despite this, the company raised its full-year guidance for consolidated adjusted EBITDA and distributable free cash flow.
Marathon Petroleum posted higher-than-expected Q2 earnings despite lower refining margins due to weaker demand and increased renewable fuel supply. High throughput and strong midstream performance helped offset margin pressure.
【Others】
Malaysia’s state energy firm Petronas has asked buyers to defer LNG cargo loadings due to operational issues at the Bintulu LNG Complex. The deferment could put upward pressure on Asian LNG prices, as demand in Asia remains strong.
Favorable U.S. unemployment data and a recovery in the stock market have eased recessionary fears, supporting oil demand. Meanwhile, geopolitical uncertainties and Libya's production outage at its largest oil field have contributed to rising oil prices. The Energy Information Administration forecasts a drawdown in global oil inventories due to OPEC production cuts.
Geopolitical tensions and force majeure at Libya’s largest oil field, Sharara, have countered weak oil demand narratives from China. Global oil inventories are projected to decrease by 800,000 barrels per day in the latter half of the year, with production growth outside of OPEC expected to be strong.
Malaysia’s state energy firm Petronas has asked buyers to defer LNG cargo loadings due to operational issues at the Bintulu LNG Complex. The deferment could put upward pressure on Asian LNG prices, as demand in Asia remains strong.
Cheniere Energy reported a 36% decline in Q2 earnings due to lower margins on delivered LNG cargoes and moderating international gas prices. Despite this, the company raised its full-year guidance for consolidated adjusted EBITDA and distributable free cash flow.
Marathon Petroleum posted higher-than-expected Q2 earnings despite lower refining margins due to weaker demand and increased renewable fuel supply. High throughput and strong midstream performance helped offset margin pressure.
【Oil-Producing Countries Dynamics】
Libya's National Oil Corporation declared force majeure at the Sharara oilfield due to protests, halting production at the country's largest field. The Sharara field has a history of shutdowns prompted by political and military conflicts, complicating plans to boost production capacity.
Just after Libya reduced production at the Sharara field, the Libyan Prosecutor’s Office ordered the arrest of the oil minister on corruption charges. This follows months of controversy and dual leadership, leaving the country unclear about its actual oil minister.
Several Western insurers have provided coverage for tankers carrying Russian oil, despite sanctions. This has allowed Russian crude exports to continue, with Russian, Chinese, and Indian insurers stepping in where Western companies hesitated.
【Latest Oil Policies】
The U.S. oil demand outlook improved with better-than-expected unemployment figures and a recovering stock market, reducing some recessionary fears.
【Industry News】
Libya's National Oil Corporation declared force majeure at the Sharara oilfield due to protests, halting production at the country's largest field. The Sharara field has a history of shutdowns prompted by political and military conflicts, complicating plans to boost production capacity.
The largest Japanese oil and gas explorer, Inpex, reported a decline in first-half net profit but has decided to significantly boost shareholder returns. The company launched a new initiative to strengthen shareholder returns and expects to set a record-high payout ratio.
Harbour Energy returned to profitability in the first half of 2024 despite a dip in revenue and free cash flow. The company improved its production guidance and made progress on a significant acquisition that will diversify its portfolio.
ChargePoint Holdings unveiled a new EV connector solution, Omni Port, that combines the most common connector types into one port, eliminating the need for adapters. This solution aims to enhance the convenience of EV charging and support wider adoption of electric vehicles.
【Company News】
Murphy Oil Corporation posted solid Q2 2024 results with adjusted net earnings beating estimates, though revenue slightly missed expectations. The company reduced expenses and debt, increased its share repurchase authorization, and maintained its production and capital expenditure guidance.
Cheniere Energy reported a 36% decline in Q2 earnings due to lower margins on delivered LNG cargoes and moderating international gas prices. Despite this, the company raised its full-year guidance for consolidated adjusted EBITDA and distributable free cash flow.
Marathon Petroleum posted higher-than-expected Q2 earnings despite lower refining margins due to weaker demand and increased renewable fuel supply. High throughput and strong midstream performance helped offset margin pressure.
【Others】
Malaysia’s state energy firm Petronas has asked buyers to defer LNG cargo loadings due to operational issues at the Bintulu LNG Complex. The deferment could put upward pressure on Asian LNG prices, as demand in Asia remains strong.