Hurricane affects Gulf of Mexico oil and gas production
- by Claude Bryan
- in Markets
- — Oct 15, 2018
Iran's crude exports fell further in the first week of October, according to tanker data and an industry source, reported Reuters, as buyers sought alternatives ahead of USA sanctions on Iran that take effect on November 4.
Brent crude settled up 17 cents a barrel at $80.43, after dropping 3.4 percent on Thursday. The Shanghai Composite dropped 5.2 percent and the U.K.'s FTSE 100 slipped as much as 1.9 percent.
Oil fell to two-week lows on Thursday as it extended losses from the previous session amid a rout in global stock markets, with prices also hit by an industry report showing US crude inventories rose more than expected. As the U.S. -China trade tensions escalate, investors are shunning risk assets from equities to oil on fears over slowing growth.
Japan's Nikkei.225 was down 0.5 percent on Friday.
Speaking to Bloomberg on the sidelines of the London conference, Vitol's Taylor said that "Physically, we don't have a supply squeeze".
"So there is real commitment in the selling ... adding to the idea that we are seeing a turn in the market", he said. According to meteorologists, the hurricane is being fed by warmer sea surface temperatures, which could lead to waves of between 15 and 20 feet-enough to disrupt oil and gas production in the Gulf.
US crude stockpiles rose more than expected last week, while gasoline inventories increased and distillate stocks drew, the American Petroleum Institute said on Wednesday.
Red Sox strike first in ALDS Game 4, take 3-0 lead
The Red Sox are back in the ALCS for the first time since 2013, when they won the World Series in six games over the Cardinals. A night after three of his calls at first base were reversed on video reviews, Angel Hernandez called balls and strikes.
That comes as Hurricane Michael became the strongest storm to hit the US mainland since 1992, threatening to slash fuel demand in the southeast, while country-wide crude stockpiles are expected to have increased a third week.
Hurricane Michael on Wednesday cut 42 percent of U.S. Gulf of Mexico daily crude oil production and almost a third of natural gas output, the largest reductions in a year, after companies evacuated staff and shut-in platforms as a precaution.
OPEC in its monthly report, said world oil demand would increase by 1.36 million barrels per day (bpd) next year, marking a decline of 50,000 bpd from its previous estimate.
The facility is the only United States port able to fully load and unload tankers with a capacity of 2-million barrels of oil.
According to Reuters, on 10 October, Hurricane Michael cut almost one-third of natural gas production and 42% of crude oil production in the US Gulf of Mexico.
The American Petroleum Institute (API), an industry group, will release its data at 4:30 p.m. (2030 GMT), followed by the EIA's report on Thursday at 11 a.m. - both reports delayed a day by Monday's federal holiday.
