Oil Daily | US Crude Inventories Rise, Global Demand Slows, Libya Faces Production Challenges
Wednesday, Aug 21, 2024 8:00 am ET
【Global Oil Supply and Demand】
Crude oil inventories in the United States rose slightly by 347,000 barrels for the week ending August 16, according to The American Petroleum Institute (API). Gasoline inventories fell by 1.043 million barrels, while distillate inventories saw a decrease of 2.247 million barrels. Cushing inventories saw a draw of 648,000 barrels.
The oil market is bracing for a softer supply-demand balance, as highlighted by BofA Global Research. The report points to an uptick in non-OPEC oil production, particularly from Brazil, Guyana, Canada, and the United States. Global oil demand growth is showing signs of slowing, driven by the increasing penetration of electric vehicles.
Oil markets have turned bearish after U.S. Secretary of State Antony Blinken revealed Israeli Prime Minister Benjamin Netanyahu's acceptance of a cease-fire proposal to stop the war in Gaza. Additionally, production at Libya's Waha oil field has returned to normal levels of 300,000 barrels per day after maintenance, with output at the Sharara field improving to 85,000 barrels per day.
【Oil-Producing Countries Dynamics】
The situation in Libya has deteriorated over the past two months, with warring factions complicating efforts for a negotiated political solution. This tension has led to yet another declaration of force majeure at Libya’s largest oil field, Sharara. The infighting makes boosting crude oil production challenging for the country.
British Oil & Gas giant BP Plc will develop Iraq's Kirkuk oil and gas fields based on a profit-sharing model. Iraq could also soon resume oil exports via a pipeline to the Turkish port of Ceyhan. Export flows to Ceyhan are yet to restart after Ankara halted Iraq's exports following an ICC ruling.
【Latest Oil Policies】
Saudi Arabia's national shipping company, Bahri, has signed a deal to purchase nine Very Large Crude Carriers (VLCCs) from Capital Maritime and Trading Corporation. This acquisition aligns with Bahri's fleet modernization strategy and is valued at approximately $999 million.
【Industry News】
Australia has approved a project to export solar power to Singapore via a subsea cable spanning over 4,300 kilometers. The project, estimated at $13.5 billion, will have a capacity of 6 GW. Sun Cable, the company behind the project, will focus on advancing towards a final investment decision by 2027.
European power markets are experiencing a shift as renewable energy sources like wind and solar become more prominent. Power prices in several European markets, including Germany, dipped below zero due to a surge in green electricity production. This highlights the challenges of managing an energy grid relying on intermittent renewable sources.
Ghana has embarked on constructing a $12 billion petroleum hub in Jomoro, expected to enhance the country's position in the global oil and gas industry. The project has faced criticism for its viability and environmental impact, but the Ghanaian government remains committed.
【Company News】
Oil producer Gran Tierra Energy has announced a £175m deal to acquire its London-listed peer i3 Energy. The acquisition is seen as a significant milestone in diversifying Gran Tierra's portfolio while strengthening its asset base. This deal follows challenging years for i3 Energy, whose share price has fallen significantly.
Four sources revealed that an arbitration panel will determine the real value of Hess' Guyana stake in a case by Exxon Mobil seeking to block a merger between Chevron and Hess. Exxon claims the merger bypasses its right of first refusal, arguing that the Guyana asset is so valuable that it would trigger a change of control.
【Others】
Crude oil inventories in the United States rose slightly by 347,000 barrels for the week ending August 16, according to The American Petroleum Institute (API). Gasoline inventories fell by 1.043 million barrels, while distillate inventories saw a decrease of 2.247 million barrels. Cushing inventories saw a draw of 648,000 barrels.
The oil market is bracing for a softer supply-demand balance, as highlighted by BofA Global Research. The report points to an uptick in non-OPEC oil production, particularly from Brazil, Guyana, Canada, and the United States. Global oil demand growth is showing signs of slowing, driven by the increasing penetration of electric vehicles.
Oil markets have turned bearish after U.S. Secretary of State Antony Blinken revealed Israeli Prime Minister Benjamin Netanyahu's acceptance of a cease-fire proposal to stop the war in Gaza. Additionally, production at Libya's Waha oil field has returned to normal levels of 300,000 barrels per day after maintenance, with output at the Sharara field improving to 85,000 barrels per day.
【Oil-Producing Countries Dynamics】
The situation in Libya has deteriorated over the past two months, with warring factions complicating efforts for a negotiated political solution. This tension has led to yet another declaration of force majeure at Libya’s largest oil field, Sharara. The infighting makes boosting crude oil production challenging for the country.
British Oil & Gas giant BP Plc will develop Iraq's Kirkuk oil and gas fields based on a profit-sharing model. Iraq could also soon resume oil exports via a pipeline to the Turkish port of Ceyhan. Export flows to Ceyhan are yet to restart after Ankara halted Iraq's exports following an ICC ruling.
【Latest Oil Policies】
Saudi Arabia's national shipping company, Bahri, has signed a deal to purchase nine Very Large Crude Carriers (VLCCs) from Capital Maritime and Trading Corporation. This acquisition aligns with Bahri's fleet modernization strategy and is valued at approximately $999 million.
【Industry News】
Australia has approved a project to export solar power to Singapore via a subsea cable spanning over 4,300 kilometers. The project, estimated at $13.5 billion, will have a capacity of 6 GW. Sun Cable, the company behind the project, will focus on advancing towards a final investment decision by 2027.
European power markets are experiencing a shift as renewable energy sources like wind and solar become more prominent. Power prices in several European markets, including Germany, dipped below zero due to a surge in green electricity production. This highlights the challenges of managing an energy grid relying on intermittent renewable sources.
Ghana has embarked on constructing a $12 billion petroleum hub in Jomoro, expected to enhance the country's position in the global oil and gas industry. The project has faced criticism for its viability and environmental impact, but the Ghanaian government remains committed.
【Company News】
Oil producer Gran Tierra Energy has announced a £175m deal to acquire its London-listed peer i3 Energy. The acquisition is seen as a significant milestone in diversifying Gran Tierra's portfolio while strengthening its asset base. This deal follows challenging years for i3 Energy, whose share price has fallen significantly.
Four sources revealed that an arbitration panel will determine the real value of Hess' Guyana stake in a case by Exxon Mobil seeking to block a merger between Chevron and Hess. Exxon claims the merger bypasses its right of first refusal, arguing that the Guyana asset is so valuable that it would trigger a change of control.
【Others】