Oil recovers on big USA crude stock drawdown

A crack was found in the Forties pipeline which carries 40 per cent of the UK’s crude oil

The price for Brent crude oil, the global benchmark for the price of oil and a component of the basket of oils carried by the Forties system, was up 0.28 percent as of 9:15 a.m. EST to $63.52 per barrel.

John Kilduff, founding partner for Again Capital, explained Thursday gains amid the confusion by pointing out that "At present you cant ignore the impact of the Forties pipeline outage; Its a significant amount of oil that the market is going to miss and is missing, and its nearly surprising its not generating more support".

Oil prices rose on Wednesday as industry data showed a larger-than-expected drawdown in US crude stockpiles, while expectations for an extended shutdown of a major North Sea crude pipeline also continued to bolster the market. On Wednesday morning, its operator said it was still considering fix options and reiterated that any repairs would take several weeks.

The operator of the damaged Forties pipeline has invoked a force majeure clause that exempts it from obligations if there are causes beyond its control.

INEOS told clients on Tuesday it expected any fix work to last at least two weeks.

S. African leader to appeal ruling on prosecutions boss
The president's appeal against the order taking away his powers to appoint an NDPP resulted in the suspension of the court order. In November past year , after Zuma failed to block its contents from being made public, Madonsela's report was released.

"We see the spate of supply projects, excluding OPEC countries and the developments in USA shale, taking their toll on the market and keeping prices in check next year", analysts at consultancy JBC Energy wrote in a note.

After settlement on Tuesday, industry group the American Petroleum Institute said crude stocks in the United States fell by 7.4 million barrels last week. South Korea and the refining hub in Rotterdam are the main export destinations for the Forties crude, apart from the Ineos 200,000-bpd Grangemouth refinery that has started to look for crude oil from other sources.

The gravity of the Forties outage was magnified by an explosion one day later at a key hub for Russian gas imports into Europe.

The Forties pipeline is "going to be down for several weeks", and "that's definitely helped support prices", Ashley Petersen, lead oil analyst at Stratas Advisors in NY, said in a telephone interview. The halt to the Forties pipeline because of a crack caused Brent to touch a two-year high during the week, pulling the USA benchmark with it. This outage may accelerate the pace of shrinking global inventories and give OPEC's efforts an unexpected boost.

Related News:

  • Geminid meteor shower could be the year's best, scientists say

    Geminid meteor shower could be the year's best, scientists say

    And at three miles wide, it is just half the size of the space rock that led to the mass extinction that wiped out dinosaurs. The name "Geminids" comes from the constellation Gemini as the meteors appear to spark outward from the star formation.
    Disney, Fox Deal Announcement Expected Thursday

    Disney, Fox Deal Announcement Expected Thursday

    Comcast issued a statement saying it was never able to secure the level of engagement needed to pursue a deal with Fox. However, now, with Disney re-igniting their talks with Fox, Comcast has made a decision to pull back.
    Apple drops white color scheme with new iMac Pro

    Apple drops white color scheme with new iMac Pro

    Assuming these details are accurate, you might be able to preorder an iMac Pro in time for Christmas. Apple unveiled the company's new iMac, the iMac Pro , back at WWDC earlier this year.
  • Obamacare insurance deadline this week

    Obamacare insurance deadline this week

    What we've seen in Florida over the last 20 years is a steady march of consolidation with hospitals acquiring other hospitals. In addition to shortening the sign up period, the Trump administration cut the federal budget for advertising for the program.
    20th Century Fox Sold to the Walt Disney Company for $52.4 billion

    20th Century Fox Sold to the Walt Disney Company for $52.4 billion

    As expected , Disney has announced its intention to buy up 21st Century Fox , further expanding its already huge media empire. Disney will acquire Twenty-First Century Fox after parts of the company split off, Good Morning America reported Thursday.
    Secondus emerges PDP national chairman amid allegations of rigging

    Secondus emerges PDP national chairman amid allegations of rigging

    Fayose, who is the Chairman of the PDP Governors Forum, broke his silence on Twitter. God bless the Peoples Democratic Party.
  • Google and NASA scientist claims, two new plants in solar system

    Google and NASA scientist claims, two new plants in solar system

    The scientists "trained" theirs using a set of 15,000 Kepler signals that had already been studied and properly labeled by humans. How did NASA find the planet? Most planets beyond our solar system are too far away to be imaged directly.
    Forecast: Blustery with lake snow tonight - Wednesday

    Forecast: Blustery with lake snow tonight - Wednesday

    A winter weather advisory for snow means meteorologists believe periods of snow will cause primarily travel difficulties. Total snow accumulations of 4 to 7 inches are possible.* WHERE.Southeast Michigan with the exception of the Thumb.
    Sarah Sanders shuts down CNN star Jim Acosta's grandstanding

    Sarah Sanders shuts down CNN star Jim Acosta's grandstanding

    Things got more testy over news coverage of the Trump White House in a later exchange between Sanders and CNN correspondent Jim Acosta.
  • As usual, LaVar Ball goes gonzo over Lonzo

    As usual, LaVar Ball goes gonzo over Lonzo

    Ball's father has created countless headlines on behalf of his son, forcing Ball to answer for his father's statements at times. He probably can easily go out for 50 every night but focuses on his team, getting triple-doubles and (getting) guys involved.
    Netflix responds to criticism over 'creepy' A Christmas Prince tweet

    Netflix responds to criticism over 'creepy' A Christmas Prince tweet

    Yesterday, the streaming giant revealed that one user had taken on 53 viewings of the festive movie A Christmas Prince . They expressed concern and asked for specifics about how many Netflix employees have access to user data .
    The Ball Brothers Just Signed With A Pro Lithuanian Team

    The Ball Brothers Just Signed With A Pro Lithuanian Team

    The team has discussed a role of 20-to-25 minutes a game apiece in the Baltic League, a source told ESPN . The team has no general manager and doesn't practice regularly due to the poor financial situation.


Most liked

Angels sign Zack Cozart to 3-year deal
While it's understandable for the Reds to be concerned about their payroll, Cozart has been a huge help in the Queen City. Cincinnati made Cozart its starter at shortstop the following season, but he didn't truly breakout until 2017.

Facebook moves to make more video ad revenue
It [Facebook] said the initial test it carried out showed that satisfaction improved by 18 percent when Ad Breaks were delayed. The other change Facebook announced is a limit on which publishers and creators are able to insert ad breaks into live videos.

Turkey condemns attack on Somali police academy
Earlier, the head of a local ambulance service said they had moved the bodies of 13 victims as well as 15 injured people. Al-Shabab has converted itself into the deadliest Islamic extremist group in the African continent.

Wreaths Across America event set for this weekend in Rock Hill
It was a natural fit for the group's efforts, said member and Wreaths Across America event coordinator Brenda Brophy. Blue Mountain Middle School near Orwigsburg hosted its fourth annual Wreaths Across America Ceremony Thursday.

Salvation Army a long way from reaching $78000 goal
Developed with the Royal Bank of Canada, the Salvation Army Kettle App can be downloaded from the Apple App Store or Google Play. And for every dollar donated to the Salvation Army, 82 cents go to support those services in 5,000 communities nationwide.

OnePlus launches OnePlus 5T Star Wars limited edition: Price & Availability
The back of the phone is varnished in Crait White, from the planet Crait featured in the film, and has the Star Wars logo on. OnePlus finally launched its special Star Wars Limited Edition OnePlus 5T in India on Thursday at a price of Rs 38,999.

Microsoft updates Bing with AI, Reddit partnership to make search results smarter
The move also came at a time when the credibility of search engines has been called into question, due to a surge in fake news. The three new features build on what Microsoft has already introduced this month, including the Whiteboard app for Windows 10.

Leader of far-right group Britain First Paul Golding arrested in Belfast
Fransen posted a tweet showing her at a wall used to divide Catholic residents from Protestants in the city to prevent violence. The police confirmed that a 31-year-old woman had been arrested as part of an investigation into "an incident at a peace wall".

Nintendo has sold more than 10 million Switch consoles since launch
It's slightly surprising given Nintendo's last console wasn't as popular, and because supply was initially limited at launch. Mario Kart 8 Deluxe , ARMS , and Splatoon 2 were all also fantastic first party additions coming out of Nintendo's camp.

TMZ Reports NSFW Sexual Harassment Allegations Against Marshall Faulk and More
Marshall Faulk , according to the complaint, would ask Cantor "deeply personal and invasive questions" about her sex life. The NFL Network issued a statement announcing the suspensions and that it would conduct its own internal investigation.

Menorah lights up New Haven Green to mark first night of Hanukkah
A crowd of more than 60 people joined Harp and Borenstein, of Chabad Lubavitch , during the lighting ceremony. In response, religious leaders made a decision to celebrate an eight-day festival of lights each year.

AAA: Gas prices drop to five-week lows
Gas prices in Rockford are down more than 5¢ over the past week, bringing the average tank of gas locally below the national rate. Test vehicles included a Ford Mustang GT, Jeep Renegade, Mazda MX-5 Miata, Cadillac Escalade ESV, Audi A-3, and Ford F150 XLT.

Manny Pacquiao reveals initial talks to fight Conor McGregor
Manny Pacquiao's heralded accomplishments in the ring have him listed as one of the 25 best pound-for-pound boxers of all time in some circles.

Antonio Conte says Chelsea's title challenge is OVER after West Ham loss
If you want to stay in the title race, you must give continuity - continuity in the result . And the win was a biggy, in the derby at the London Stadium against Chelsea .

Amazon's Alexa Can Now Wake You Up to Music of Your Choice
The BBC has launched an Amazon Alexa skill for Echo devices - its first full voice app for voice-controlled smart speakers. The music alarm can also be set up as a recurring one by adding terms such as "every weekday" to the voice command.