Mid-Week Review – August 26, 2020

Laura Looms: Gulf Coast Oil Refineries Brace for Cat 3 Hurricane

Hurricane Laura is set on a collision course with America’s refinery row. Forecast to grow into a Category 3 storm before landfall early Thursday morning, Laura will strike near the border of Texas and Louisiana. The nation’s biggest refinery, Saudi Aramco’s 600,000 bpd plant in Port Arthur, Texas, near the Louisiana border, could get a direct hit. It has already shut down, as have others in Port Arthur including Total’s 225,00 bpd refinery, and Valero’s 335,000 bpd. They may not reopen for a while. Click here to read more from Forbes.

State of Transportation, Energy, and Vehicle Electrification

The transportation market is transitioning to lower-carbon-intense sources of energy and more efficient use of existing energy resources, but the transition is proceeding at an evolutionary pace. While many are advocating a rapid transition to an electrified transportation market, the realities of market fundamentals and the nature of consumer choice stand in the way of radical reform. Click here to read more from Fuels Institute.

Tracking the Growing Wave of Oil & Gas Bankruptcies in 2020

2020 hasn’t been kind to the energy sector, and a growing wave of energy bankruptcies has started to build. After a difficult year marred by rising geopolitical tensions in the Middle East and crude prices in the $50-60 per barrel range, analysts warned that the energy sector needed a strong recovery to offset a rising (and expiring) mountain of debt. Instead, the oil patch has seen one bombshell after another, and the impacts are adding up. Click here to read more from Visual Capitalist.

Oil Market Treads Rebalancing Tightrope as Demand Recovery Falters

Global oil market balances are largely supportive of firmer oil prices over the coming 18 months, with demand exceeding supply despite growing concerns over the potential for a second wave of COVID-19 infections to derail the economic recovery. Click here to read more from S&P Global Platts.

Mid-Week Review – August 19, 2020

Oil price fundamental daily forecast – API gasoline build offsets crude oil draw

The range is tight and volume is well below average with investors keeping one eye on the key OPEC+ ministerial meeting later in the day, and the other eye on a US government weekly inventories report, due to be released at 14:30 GMT. Click here to read more from FXEmpire.

Major forecasters agree: No oil demand recovery until at least 2022

Global oil demand won’t return to 2019 levels until at least 2022 and the gap may be getting wider than it seemed a month ago. All three of the world’s main oil forecasting agencies — the International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries — published new quarterly forecasts this week and none project oil demand back at 2019 levels by the end of next year. Click here to read more from World Oil.

Mauritius copes with split Japanese ship that spilled oil

Work began Monday to remove the two pieces of a grounded Japanese ship that leaked tons of oil into the protected coast of the Indian Ocean island nation of Mauritius and broke apart. Tug boats will pull the bow — the smaller part of the shipwrecked MV Wakashio — out to sea and allow it to sink, according to environmental experts on the island. The larger part of the ship will be dragged off the coral reef where it ran aground and towed away, possibly to India for salvage. Click here to read more from AP News.

How would a 2nd lockdown affect oil prices?

Wood Mackenzie’s (WoodMac) Brent oil price forecast would be significantly affected in a second lockdown wave scenario, an opinion piece posted on the company’s website by WoodMac’s director of Americas gas and LNG research, Dulles Wang, has revealed. Click here to read more from Rigzone.

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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