Oil recovers on big U.S. crude stock drawdown

16 December, 2017, 05:59 | Author: Manuel Hopkins
  • Image INEOS

Ineos, which operates the Forties pipeline system in the North Sea, said Wednesday it was reviewing a range of options to fix cracks in a system that carries about 40 percent of total regional production, or about 450,000 barrels per day.

Despite the International Energy Agency sending profoundly mixed signals about the true state of the crude market, West Texas Intermediate on Thursday settled up 44 cents to $57.04 per barrel while Brent rose 87 cents to $63.31 per barrel. The oil pipeline will likely be shut down for two to three weeks, Ineos director Tom Crotty told Bloomberg TV on Tuesday. On Wednesday morning, its operator said it was still considering fix options and reiterated that any repairs would take several weeks.

Kilduff was referring to the shutdown by Ineos of the North Sea pipeline due to cracks that are expected to take anywhere from several weeks to a month to fix, thus potentially removing as much as much as 13 million barrels of crude from the market. Operator INEOS declared force majeure on Forties, the first such declaration in decades.

While the pipeline outage physically mostly affects the North Sea region, it is of global relevance as the crude it supplies is part of the supply that underpins the Brent price In the last 24 hours, a safety cordon around the damaged pipeline has been halved as a crack has not grown.

According to data compiled by Bloomberg, the Forties shutdown will remove an additional 5.5 million to 13 million barrels from the market by the time the pipeline is restarted.

Somalia's Shabaab kill 18 cops in academy bombing
The group, which is allied to al Qaeda, is waging an insurgency against the UN-backed government and its African Union allies. Female police officers were among those killed in the attack in which Al-Shabaab militant group has claimed responsibility.

At the same time, OPEC is upbeat about the massive drawdowns in recent months.

In the Wednesday report, the EIA said crude stocks fell 5.1 million barrels in the week ended December 8.

"The effect of Forties structure - it is super backwardated, so anyone who wants to place a cargo in the near term is penalized - super expensive, with this change in structure", one crude trader told Platts.

Traders are watching the spread, or difference, between Brent and WTI closely.

"Brent crude raced higher ... as news broke that the North Sea's Forties Pipeline system would have to be shut down for a "number of weeks" after a hairline crack was found in it", said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.


  • Bing AI features add Reddit posts, multiple perspectives to search results

    Bing AI features add Reddit posts, multiple perspectives to search results

    Text in image search is now rolling out and will be available to all Office 365 commercial subscribers by the end of December. Further, the representative added that in the US alone, almost one-third of desktop searches are done on Bing.
    PBS Suspends Tavis Smiley After Sexual Misconduct Allegations

    PBS Suspends Tavis Smiley After Sexual Misconduct Allegations

    Senate is believed to be in part because of charges that he dated and sexually molested teenage girls in the 1970s. Alabama Republican Roy Moore's loss in Tuesday's special election to the U.S.
    Facebook agrees to pay millions more in tax

    Facebook agrees to pay millions more in tax

    Google , for example, booked €26.3 billion of global revenues here previous year , paying tax of €163 million tax in Ireland. This will affect its operations in nearly 30 countries where it has a physical presence such as a sales office.
  • Apple Investing $390 Million In Finisar From Its Advanced Manufacturing Fund

    Apple Investing $390 Million In Finisar From Its Advanced Manufacturing Fund

    You can find out more information about Apple and their Advanced Manufacturing fund at the link below. Apple says 100 percent of the VCSELs that the company purchases from Finisar will be made in Texas.
    Alerts, Advisories Issued As 1st Widespread Snow Event Of Season Expected

    Alerts, Advisories Issued As 1st Widespread Snow Event Of Season Expected

    There is also Wind Chill Advisory in effect for Avery County, where the wind chill could fall as low as -5 degrees. Lake effect snow is expected to continue through Wednesday with another clipper low sliding by Wednesday evening.
    Menorah lighting in uptown Waterloo marks start of Hanukkah

    Menorah lighting in uptown Waterloo marks start of Hanukkah

    Today, we rededicate ourselves to making this world a better and brighter place. The lighting of the menorah, however, must be done from left to right.
  • Oil rises after U.S.  crude stocks fall, again

    Oil rises after U.S. crude stocks fall, again

    Brent crude futures, the worldwide benchmark for oil prices, were at $62.81 a barrel, up 37c, or 0.6% from their last close. But increased production in the United States is driving faster growth in the global supply of oil, the IEA said.
    Apple makes iMac Pro available for order

    Apple makes iMac Pro available for order

    We've been expecting a December launch since the initial announcement, though Apple has been quiet on that front in recent months. Hardly a surprise, Apple at WWDC this past summer proudly boasted that it's the fastest and most powerful Mac ever created.
    Flu vaccinations in Sask. up 11 per cent this year

    Flu vaccinations in Sask. up 11 per cent this year

    Experts are predicting this can be an unusually harsh flu season because of the fact that the flu vaccine is not that effective. Given what they are seeing, officials say the season might be a bit early this year.
  • Company To Promote Videos More

    Company To Promote Videos More

    It [Facebook] said the initial test it carried out showed that satisfaction improved by 18 percent when Ad Breaks were delayed. Previously videos had to be a minimum of 90 seconds, and the first ad break was allowed to appear after 20 seconds.
    Why is it called the Geminids meteor shower?

    Why is it called the Geminids meteor shower?

    They'll stand out as they streak across the darkened sky, and there could be about 60 meteors an hour at the peak. Even if you missed the height of the handsome display, meteor showers will last until dawn on December 14.
    'Set up state capture inquiry'

    'Set up state capture inquiry'

    The court ruling on Wednesday may well deepen sentiment among A.N.C. officials that it is time for a clear break with Mr. Mlambo rebuked Zuma, saying he had attempted to interfere with the Constitutional obligation of the Public Protector.


Zack Cozart Completes Dream Offseason for LA Angels
Cozart became the third Reds shortstop to earn a fan election, joining Dave Concepcion and Hall of Famer Barry Larkin . Cozart said his donkey - a present from Joey Votto for making the All-Star team - will stay in Cincinnati for now.

Salma Hayek Claims Harvey Weintstein Threatened to Kill Her
Weinstein, who is now under investigation for sexual assault in four cities, has denied all allegations of nonconsensual sex. Talking about her earlier years in Hollywood she said it was Harvey who had taken a chance on her, "a nobody".

Rush To Enroll For Insurance Under Affordable Care Act Expected
Since President Donald Trump took office, he has tried to repeal and replace the ACA, which was one of his campaign promises. In many communities, bare-bones "bronze" plans are available for no monthly premium to those eligible for subsidies.

LeBron James explains what he loves about Lonzo Ball
Here it goes again, it goes back to my instant oatmeal (quote): Everybody wants it right away. "He's a great player", Ball said. There is nothing bad in that, it is just the rite of passage that every rookie, even James, endured.

Dennis Rodman seeking Guam-N. Korea basketball game in February
Rodman says the war of words between Trump and Kim has been harmless "entertainment". "We need no more war", Rodman said. I'll tell you what the Marshal wants more than anything ...

Samsung announces upgraded Notebook 9 with S Pen
The new notebooks from Samsung are portable productivity powerhouses with high-quality performance and long battery life. Apart from that, the laptops will also sport HDMI port, USB-C port, fingerprint scanner and PCI Express-based NVMe SSDs.

Israel shuts down Gaza crossings, strikes posts in Gaza following rocket attack
The shelling was carried out after the discovery of the missile that was sacked towards Israel from the Palestinian territory. Two other Palestinians have been killed in confrontations with Israeli troops during riots along the border.

TV bosses rush to sign Georgia Toffolo following I'm A Celeb win
Made in Chelsea star Georgia Toffolo has said she can not believe she has been crowned the victor of I'm a Celebrity ... Toffolo was handed her queen of the jungle crown by last year's victor , former Gogglebox star Scarlett Moffatt .

Carson Wentz injury: Philadelphia Eagles quarterback tore ACL, out for the season
They're very appreciative, and I appreciate that and how they think that", laughing now, "even at 47 I can come back and do it. Fans are obviously plenty upset over the loss of Wentz, but there's reason to have a bit of optimism about Foles.

Ball Brothers Sign With Tiny Lithuanian Club
Valanciunas-who played in the Lithuanian League before entering the NBA-added that "the sky's the limit" for the Ball Brothers. The news comes after reports that LiAngelo and LaMelo were mulling options to sign internationally, according to Yahoo Sports.