Nick Note: Sell the Shit Out of OIL!!!!
- U.S. crude rose above $75 a barrel for the first time since November 2014 on Tuesday, after Libya declared force majeure on some of its crude exports.
- Production at Syncrude Canada’s 360,000 barrels per day (bpd) oil sands facility near Fort McMurray, Alberta, was hit by a power outage last month.
- The Organization of the Petroleum Exporting Countries pumped 32.32 million bpd in June, a Reuters survey showed, up 320,000 bpd from May.
U.S. crude fell suddenly and sharply in mid-morning trade on Tuesday, after briefly topping $75 a barrel for the first time since November 2014 The American benchmark broke through the threshold as the market grew increasingly concerned about a shortage of oil amid supply disruptions in Libya and Canada and as tough U.S. sanctions on Iran loom.
“You’re starting to hear talk of oil shock. There is little confidence in the market that we’re going to escape an ever-tightening supply and demand balance now,” said John Kilduff, founding partner at energy hedge fund Again Capital Exacerbating those surprise events, a Trump administration official told reporters that American diplomats are pushing oil buyers to cut off all purchases of Iranian crude by the beginning of November. A senior State Department official reaffirmed the tougher-than-anticipated policy on Monday.
After oil prices turned lower, analysts pointed to a report from Saudi Arabia’s state media agency saying the kingdom’s Council of Ministers, chaired by King Salman bin Abdulaziz, is ready to deploy the nation’s spare capacity to add more oil to the market. President Donald Trump has asked the king to raise output by as much as 2 million barrels per day.
OPEC, the Saudi-dominated group of 14 oil producers, reached an agreement with Russia and other exporters last month to raise output by about 1 million bpd. The Organization of the Petroleum Exporting Countries pumped 32.32 million bpd in June, a Reuters survey showed, up 320,000 bpd from May. The June total is the highest since January 2018. The UAE’s Abu Dhabi National Oil Co (ADNOC) said on Tuesday it could increase production by several hundred thousand barrels per day if needed.GasBuddy: Gas prices could head back to the 3 dollar a gallon level in the next 7 to 10 days 5 Hours Ago | 01:45 Higher output from Saudis Arabia, Russia and the United Arab Emirates, along with surging U.S. exports, will likely compensate for disruptions in Libya, Venezuela and Iran, said Roberto Friedlander, head of energy trading at Seaport Global Securities. Nick Bit: I want to be crystal clear here,….. Oil will wipe out and be in the forties faster then Morgan Stanley the oil manipulaters would have you believe.. Choose!