Mid-Week Review – January 22, 2020
Oil Market Shrugs Off Libya Crisis Amid Ample Global Supply
Oil prices fell on Tuesday on expectations that a well-supplied global market, including supplies from growing record U.S. production, would be able to absorb disruptions that have cut Libya’s crude production to a trickle. Libya’s barrels “although plentiful when around, have not been a reliable count,” said Brayton Tom, Senior Risk Manager for INTL FCStone’s energy team. “At the end of the day spare capacity is abundant in the region.” Click here to read more from Reuters.
Barclays: Global Oil Demand is Set to Jump in 2020
Barclays expects crude oil demand this year to rise by 1.4 million bpd, up from 900,000 bpd last year, thanks to the improved global economy outlook. The new forecast is an upward revision of 500,000 bpd from Barclays’ previous oil demand prediction. In a note, Barclays said India will be the biggest driver of this heightened demand growth, followed by other Asian nations and countries in Latin America. Demand in the United States and China will also improve following the signing of the Phase 1 trade deal between the two. Click here to read more from Oilprice.com.
EIA Forecasts U.S. Shale Oil Output to Climb by 22,000 Barrels a Day in February
Crude-oil production from seven major U.S. shale plays is forecast to climb by 22,000 barrels a day in February to 9.2 million barrels a day, according to a report from the Energy Information Administration released Tuesday. Oil output from the Permian Basin, which covers parts of western Texas and southeastern New Mexico, is expected to see the biggest increase, up 45,000 barrels a day in February from January. Click here to read more from MarketWatch.
Standoff: U.S. Troops Block Russian Forces from Capturing Syrian Oil Field
U.S. troops last weekend reportedly found themselves in a standoff with Russian forces trying to gain access to key oil fields in northeastern Syria. The Saturday standoff — first reported by Turkish media outlets, citing unnamed local officials in the Turkey-Syria border region — seems to have ended without any shots being fired or any real risk of violence between the two sides. American military personnel reportedly stopped a Russian convoy near the town of Rmelan, and the Russian forces then apparently turned back and returned to their home base. Click here to read more from the Washington Times.
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