Friday, 19 April 2013

US crude oil supplies down by 1.2 million barrels

United States crude inventories dropped by 1.2 million barrels, or 0.3 percent, to 387.6 million barrels, which is 5 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.
Gasoline supplies fell by 600,000 barrels, or 0.3 percent, to 221.7 million barrels. That's 3.6 percent above year-ago levels. Analysts expected gasoline supplies to shrink by 1.1 million barrels.
U.S. refineries ran at 86.3 percent of total capacity on average. Analysts expected capacity to rise to 87.3 percent. Supplies of distillate fuel, which include diesel and heating oil, grew by 2.4 million barrels to 115.2 million barrels. Analysts expected distillate stocks to decline by 850,000 barrels.

European refiners face dwindling fortunes

Squeezed between shrinking exports to the United States, game-changing giant Middle East refineries and dwindling domestic demand, more European refineries are likely to face the axe.
Demand for refined product in Europe is set to decline by 170,000 bpd every year over the coming five years, leading to the closure of two small refineries or one large refinery.
Oil major Shell announced that it was considering the sale of the bulk of its downstream business in Italy, following the recent sale of refineries in Britain and Germany. Overall European refining margins, or cracks, averaged at $5.46 a barrel in March, compared with $22.83 a barrel in the United States, where refiners enjoy significantly lower crude prices.

Wednesday, 17 April 2013

Brent drops below $99; demand worries persist

Brent crude fell below $99 per barrel weighed by the prospect of sluggish fuel demand in top consumers in the United States and China and in addition to rising stockpiles of U.S. crude.
More bleak economic news came courtesy of the International Monetary Fund (IMF), which trimmed projections for this year and next - implying limited upside for oil demand growth.
The North Sea benchmark has lost nearly 6 percent over the past five sessions in a wider commodities rout triggered by data showing growth in China, the world's second largest oil burner, had slowed unexpectedly in the first three months of 2013.
The head of the International Energy Agency, Maria van der Hoeven, said the oil price decline was proof that the market was adequately supplied.
Brent crude shed $1 to $98.91 after sinking earlier to $98.80, the weakest since July 2012. U.S. crude slipped $1.29 to $88.43.

Tuesday, 16 April 2013

NNPC: Crude Oil Production Stable despite MEND Attacks

The Nigerian National Petroleum Corporation (NNPC) has said that there is relative stability in crude oil production in the Niger Delta region despite resumption of hostilities by the militant group, Movement for the Emancipation of the Niger Delta (MEND).
Following MEND’s recent threat to resume attacks on oil and gas facilities across the oil-bearing region, NNPC stated in Abuja that it had not received any report of decline in crude oil production from its exploration and production (E&P) division, thus suggesting that average production could still be hovering at over 2 million barrels per day (bpd).

Monday, 15 April 2013

Centrica, Qatar to buy over $900 of gas assets in Canada

Britain's Centrica Plc and Qatar Petroleum International said they will buy Suncor Energy Inc's conventional natural-gas business in Western Canada for $986.73 million - their first acquisition since they decided in 2011 to hunt jointly for international energy assets.
Centrica, Britain's biggest energy supplier and its partner, the international arm of the world's largest liquefied-natural gas exporter, will take control of Suncor gas assets in Alberta, British Columbia and Saskatchewan that produce 250 million cubic feet per day from reserves pegged at 978 billion cubic feet. When combined with its other Canadian gas properties, the acquisition will give Centrica 60 percent of the gas needed for its Direct Energy unit, which delivers energy to six million customers in Canada and the United States, while Qatar gets its first exposure to the Canadian natural gas industry.