Oil Steady on Libya Halt as Saudis Promise a Smooth End to Curbs

Futures in New York were little changed, after rising 3 percent the previous two sessions. Libya’s crude loadings from the Mellitah terminal will be “modified” after protests impeded output at the El-Feel field. Cuts by OPEC and its allies may be phased out in 2019 in a way that won’t disturb the market, Saudi oil minister Khalid Al-Falih said. Still, U.S. supply remains a threat, with the nation’s rig count rising for a fifth week to the highest since April 2015.

Oil has risen more than 5 percent this year, following a second annual gain, as a drain in U.S. stockpiles and growing demand reassure investors that production cuts led by the Organization of Petroleum Exporting Countries are working. While America continues to pump record volumes, accompanied by an increase in exports, Al-Falih said the global oil market is re-balancing and bloated inventories are shrinking.

Crude loadings at Melittah, the export terminal for El-Feel, will be slowed after force majeure was declared on deliveries from the deposit on Feb. 23 following protests over pay and other benefits, the state-run National Oil Corp. said in a document obtained by Bloomberg. Libya is an OPEC member that was allowed to increase production, exempt from the group’s effort to reduce output to eliminate a global glut.

“Investors are likely looking at Libya for a potential reason for a rally in oil prices, but this shouldn’t last too long,” Barnabas Gan, an economist at Oversea-Chinese Banking Corp., said by phone from Singapore. “Global oil fundamentals have been improving ever since OPEC and its allies agreed for production cuts, and the demand story is still supporting prices.”
more at:  https://www.bloomberg.com/news/articles/2018-02-25/oil-halts-gains-as-saudis-see-crude-output-cuts-easing-in-2019

Related Posts

ATA Truck Tonnage Index Decreased 1.1% in July

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index fell 1.1% in July after rising 0.5% in June. In July, the index equaled 116.2 (2015=100) versus 117.5 in June. “Tonnage declined sequentially in July for only the second time during the last twelve months. Despite the dip from June, tonnage remains at elevated levels and increased significantly from a year earlier,” said ATA Chief Economist Bob Costello. “While tonnage is much stronger than a year ago, the monthly gains have moderated as the year has gone on. The combination of softer consumption of goods, home construction falling and slower manufacturing activity are the main reasons.” June’s increase was revised down from our July 19 press release. Compared with July 2021, the SA index increased 5.1%, which was the eleventh straight year-over-year gain. In June, the index was up 5.6% from a year earlier. Year-to-date, compared with the same period in 2021, tonnage was up 3.4%.

Transportation prices set record for rate of decline in February (freightwaves.com)

Transportation prices fell in February at the fastest rate recorded in the six-and-a-half-year history of a monthly survey of supply chain executives. The Logistics Managers’ Index (LMI) registered a reading of 36.1 for transportation costs in February, 5.9 percentage points lower than in January and below the prior record, which was established in December. A level below 50 indicates contraction while one above signals expansion. The report said the rate declines were “a little more pronounced in the later portions of the month than in the beginning of the month.” “February is generally a low point seasonally due to the consumer spending hangover from the holidays in the U.S. combined with slowness in imports due to Chinese New Year, and that was certainly reflected this year,” the report stated.
Back To Top
×Close search
Search