Hurricanes and tropical storms cause U.S. oil and gas production to decline, international oil prices rebound
- Categories:Industry News
- Release date:2020-08-25
- 浏览次数:0
Summary descriptionAffected by U.S. hurricanes and tropical storms, more than half of the Gulf of Mexico’s offshore oil production was shut down, and nearly half of the natural gas production was suspended. International oil prices rebounded. Monday (August 24) New York Mercantile Exchange West Texas Light Oil October 2020 crude oil futures settled at US$42.62 per barrel, up US$0.28 or 0.7% from the previous trading day, trading range of US$42.23-42.89; London The October 2020 futures settlement price of Brent crude oil on the Intercontinental Exchange was US$45.13 per barrel, an increase of US$0.78 or 1.8% over the previous trading day. The trading range was US$44.29-45.18.
Hurricane Marco and tropical storm Lau
Hurricanes and tropical storms cause U.S. oil and gas production to decline, international oil prices rebound
摘要说明:Affected by U.S. hurricanes and tropical storms, more than half of the Gulf of Mexico’s offshore oil production was shut down, and nearly half of the natural gas production was suspended. International oil prices rebounded. Monday (August 24) New York Mercantile Exchange West Texas Light Oil October 2020 crude oil futures settled at US$42.62 per barrel, up US$0.28 or 0.7% from the previous trading day, trading range of US$42.23-42.89; London The October 2020 futures settlement price of Brent crude oil on the Intercontinental Exchange was US$45.13 per barrel, an increase of US$0.78 or 1.8% over the previous trading day. The trading range was US$44.29-45.18.
Hurricane Marco and tropical storm Lau
- Categories:Industry News
- Author:Wu Yan
- Origin:Longzhong Information
- 发布日期:2020-08-25
- 浏览次数:0
Affected by U.S. hurricanes and tropical storms, more than half of the Gulf of Mexico’s offshore oil production was shut down, and nearly half of the natural gas production was suspended. International oil prices rebounded. Monday (August 24) New York Mercantile Exchange West Texas Light Oil October 2020 crude oil futures settled at US$42.62 per barrel, up US$0.28 or 0.7% from the previous trading day, trading range of US$42.23-42.89; London The October 2020 futures settlement price of Brent crude oil on the Intercontinental Exchange was US$45.13 per barrel, an increase of US$0.78 or 1.8% over the previous trading day. The trading range was US$44.29-45.18.
Hurricane Marco and tropical storm Laura swept across the Caribbean Sea and the Gulf of Mexico on Sunday, forcing energy companies to withdraw their staff from offshore platforms and stop oil production. Data show that 114 offshore drilling platforms in the Gulf of Mexico have evacuated personnel. On Sunday, oil producers have closed off 57.6% of offshore oil production and 44.6% of natural gas production in the Gulf, which accounts for 17% of total US oil production and 5% of natural gas production. According to the latest news, the National Hurricane Center of the United States said that tropical storm "Marco" is located about 150 miles (240 kilometers) south-southeast of the Mississippi River estuary, with a maximum sustained wind speed of 65 miles per hour (100 km/h). "Laura" continued to cause heavy rains in eastern Cuba and Jamaica.
According to Edward Moya, senior market analyst at OANDA in New York, crude oil prices are rising because of the double hurricane that may cause a huge disruption in the Gulf of Mexico oil business. However, as the uncertainty of the new crown epidemic continues to put pressure on the outlook for crude oil demand, the rise in oil prices may weaken .
Bjornar Tonhaugen, head of RystadEnergy's oil market, said that given that a large amount of oil production has been shut down, the range of oil price changes is “minimal”. "Emergency events like today (hurricanes and tropical storms) cannot really offset the concerns of public health incidents for market participants." He said in a report, "Decreased oil production has given traders a breather. In the past. In the next few weeks, due to the lag in demand recovery, global production has increased, but what really affects the market is news on demand recovery."
US gasoline and ultra-low sulfur diesel futures prices also rose sharply. September futures futures rose 4.3%, and ultra-low sulfur diesel futures rose 3.3%. Phil Flynn, a senior market analyst at PriceFuturesGroup in the US, said traders buy petroleum products before the storm to prevent some refineries from flooding or power outages.
With oil prices stabilizing above US$40 per barrel, the number of oil and gas rigs in the United States has increased for the first time since March, with oil rigs having the largest increase in seven months. Last week, the largest increase in drilling rigs was in the Permian area of the United States. The previous week, oil rigs in the Permian area were reduced to the least since Baker Hughes had data records in 2011, but there was a sudden increase of 10 rigs last week. There are currently 183 active oil rigs in the United States, of which 127 are located in the Permian Basin in western Texas and eastern New Mexico.
US crude oil futures prices have rebounded from their historical lows in April to around US$42 per barrel, rising by nearly US$80 per barrel, an increase of more than 120%, but they are still down about 32% from the beginning of the year. However, in view of the fact that the impact of public health incidents on the economy and oil demand is still uncertain, oil prices may fall, and US oil rigs may decrease again.
US financial services company Cowen & Co. said that the 45 independent exploration and production (E&P) companies tracked by the company plan to cut capital expenditures by about 47% in 2020 compared to 2019. In 2019, these companies in the United States reduced capital expenditures by about 9%, and in 2018 they increased by 23%. It is expected that in 2021, the capital expenditure of these companies in the United States will also be reduced by 8%.
The net long positions of managed funds in Brent crude oil futures and options fell by 0.63% last week. According to data analysis provided by the Intercontinental Exchange, as of the week of August 18, Brent crude oil futures and options held 3,155,247 lots, an increase of 59001 lots from the previous week; the managed funds held Brent crude oil futures and options The net long was 203,816 hands, a decrease of 1,292 hands from the previous week. Among them, long positions increased by 3315 hands and short positions increased by 4607 hands.
The net long position of managed funds in Brent crude oil futures decreased by 1.33%. According to data analysis provided by the Intercontinental Exchange, as of the week of August 18, Brent crude oil futures held 25,12720 lots, an increase of 37,137 lots from the previous week; managed funds held 205,224 net longs in Brent crude oil futures. , 2774 hands less than the previous week. Among them, long positions increased by 2,175 hands, and short positions increased by 4949 hands.
Article source: Longzhong Information
Scan the QR code to read on your phone
Recommended
information
SHANDONG CHAMBROAD SINOPOLY NEW MATERIALS CO.,LTD
National Customer Service Line:
Add:
Boxing Economic Development Zone, Binzhou City, Shandong Province
Copyright © 2019 SHANDONG CHAMBROAD SINOPOLY NEW MATERIALS CO.,LTD 鲁ICP备20032804号 Powered by:xinnet