Oil prices dip as traders assess U.S. hurricane impact
Oil prices edged down in early Asian trading on Tuesday, as traders weighed up the dampening effect on demand of Hurricane Irma versus refinery restarts in the wake of Hurricane Harvey that should lead to more crude oil processing, APA reports quoting Reuters.
International benchmark Brent crude LCOc1 was down 5 cents, or 0.1 percent, at $53.79 per barrel by 0247 GMT from the previous close.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 4 cents, or 0.1 percent, at $48.03 a barrel.
U.S. refineries, including the largest U.S. refinery Motiva Enterprises MOTIV.UL, have started to come back online. Motiva restarted production on Monday after being shut for about two weeks as Hurricane Harvey ripped through the U.S. Gulf coast.
On Harvey’s heels, Hurricane Irma slammed into Florida on Sunday, leaving more than 7.4 million homes and businesses without power, but has since been downgraded to a tropical storm.
U.S. crude inventories likely rose last week following the hurricane impact, while refined product stockpiles were forecast to have declined, a preliminary Reuters poll showed.
Six analysts polled ahead of inventory reports from industry group the American Petroleum Institute (API) and the U.S. Department of Energy’s Energy Information Administration (EIA) estimated, on average, that crude stocks likely rose 2.3 million barrels in the week ended Sept. 8.
The API is due to release its data for last week at 4:30 p.m. EDT (2030 GMT) on Tuesday and the EIA report is scheduled at 10:30 a.m. EDT on Wednesday.
“The market is looking for a significant build in oil inventories,” said Ric Spooner, chief market analyst at CMC Markets in Sydney. “That’s not surprising given the disruption of refineries as consequences of hurricanes so I guess there’s a bit of caution here.”
Amid persistent glut concerns, Saudi Arabian Energy Minister Khalid al-Falih had talks with his Venezuelan, Kazakh counterparts about the possibility of extending supply cuts beyond March 2018.
“Reports of an extension of the current production cut agreement continued to swirl around the market,” ANZ bank said in a note.
The Organization of the Petroleum Exporting Countries (OPEC), of which Saudi Arabia is the de facto leader, and other producers including Russia, have agreed to curb their output by around 1.8 million barrels per day until next March.
OPEC’s secretary-general Mohammad Barkindo said on Monday the supply cut deal was expected to help the global oil market rebalance and strong demand could further reduce oil inventories.
Related news releases
- 20.02.2018Azerbaijan doubles export of oil products to Georgia
- 20.02.2018Azerbaijan increases gas export to Georgia more than 1%
- 20.02.2018Azerbaijan increases energy export to Georgia by 11%
- 20.02.2018Azerbaijan exports more than 9,000 tonnes of fuel to Georgia last month
- 16.02.2018SGC Advisory Council provides political support to Shahdeniz 2 - DECLARATION
- 16.02.2018Azerbaijan earned $125B from ACG fields block so far
- 16.02.2018TANAP to transport 2 bcm of gas this year
- 16.02.2018BP remains committed to achieving a nationalization target of 90 percent for professional staff by year-end
- 16.02.2018BP-Azerbaijan: Overall, 99 percent of SCPX first gas scope is already complete
- 16.02.2018SCP spends $813M last year
- 16.02.2018Shah Deniz 2 first gas scope is now 99 per cent complete - BP
- 16.02.2018Shahdeniz produces 10.2 bcm of gas and 2.4 million tonnes of condensate last year
- 16.02.2018Amount of capital and operating expenditures on Shahdeniz announced
- 16.02.2018BTC exports 34 million tonnes of crude oil in 2017
- 16.02.2018Sangachal terminal exports more than 283 million barrels of oil in 2017
- 16.02.2018ACG delivers nearly 3 bcm of associated gas to SOCAR last year
- 16.02.2018ACG produces 29 million in total tonnes of oil last year
- 16.02.2018$1.64B spent on ACG last year
- 16.02.2018S&P could downgrade Azerenerji
- 16.02.2018Details of documents signed at the 4th Ministerial Meeting of SGC Advisory Council announced
- 16.02.2018S&P: Without ongoing and extraordinary state support, Azerenerji would face difficulties in servicing its debt
- 16.02.2018S&P anticipates no tariff revisions in Azerbaijan in next two years
- 16.02.2018Azerbaijan gets 73% growth in solar power production in January
- 16.02.2018Azerbaijan increases gasoline and diesel production this year
- 16.02.2018Azerbaijan increases gold production by 7.1-fold last month
- 16.02.2018Azerbaijan reduces oil and gas production
- 16.02.2018S&P: Outlook on Azerenerji is negative
- 16.02.2018Gas transportation via main pipelines increases by over 2%
- 16.02.2018BTC transports 554,000 tonnes of transit oil last month
- 16.02.2018Azerbaijani President: "Azerbaijan is ready to enter the European market with its gas resources"
- 15.02.2018Azerbaijani President: "The Southern Gas Corridor is a main element of the strategy that helps us to diversify our economy" - UPDATED
- 15.02.2018Southern Gas Corridor will ensure energy security worldwide: US State Department official
- 15.02.2018Total construction costs of STAR Refinery increased to $6.3B – Fitch
- 15.02.2018Europe ready to discuss Iran’s joining SGC - Maros Sefcovic
- 15.02.2018Minister: Azerbaijan has successfully been implementing oil and gas strategy for long years
- 15.02.2018Maros Sefcovic: We’ll feel safer when SGC provides Europe with energy
- 15.02.2018Fitch views contract to extend PSA for ACG as positive
- 15.02.2018Maros Sefcovic: Turkmenistan’s joining SGC is being discussed
- 15.02.2018Minister: First gas on TANAP to be transported from Azerbaijan to Turkey in the middle of this year
- 15.02.2018Joint Declaration signed at 4th Ministerial Meeting of SGC Advisory Council
- 12.09.2017Azerbaijan quadruples revenues from energy export
- 12.09.2017Azerbaijan gets 22% decline in revenues from crude oil export
- 12.09.2017Azerbaijan gets 22% rise in revenues from natural gas export
- 11.09.2017SOCAR increases budget transfers by 15%
- 08.09.2017Georgia reduces gasoline and diesel import from Azerbaijan
- 08.09.2017Oil transportation via BTC declines 10%