As EIA informs, the Suez Canal and the SUMED Pipeline are strategic routes for Persian Gulf crude oil, petroleum products, and LNG shipments to Europe and North America. Located in Egypt, the Suez Canal connects the Red Sea with the Mediterranean Sea, and is considered as a key chokepoint due to the large volumes of energy commodities that flow through it.
Libyan National Oil Corporation declared a state of force majeure on crude oil loadings at Zawiya port beginning on July 20. This is because of an unlawful Sharara pipeline valve closure by an unidentified group between Hamada and the Zawiya port, suspending production. However, today (July 22), NOC announced that it lifted the force majeure.
On 20 June 2019 the US pulled back from retaliatory military strikes against Iran, after Iran’s targeting of a US drone allegedly operating in Iranian airspace. This came after a series of attacks on vessels in the Gulf of Oman area, most recently on the Front Altair and the Kokuka Courageous. For this reason, Jean Koh, Daniel Martin and Isabel Phillips, HFW, advise brokers to consider their shipowners’ and charterers’ rights while operating in this tense climate.
Worldwide discoveries of conventional oil and gas continue to present promising growth, as new finds total to an overall 6.7 billion barrels of oil equivalent (boe) in the first half of 2019, according to the mid-year assessment of upstream data by Rystad Energy.
According to the Norwegian Petroleum Directorate, preliminary production figures for June 2019 show an average daily production of 1,409,000 barrels of oil, NGL and condensate. This marks a decrease of 184,000 barrels per day in comparison to May.
Oil company Husky Energy is planning to install a replacement flowline connector at the White Rose Field. This comes after the 250.000-liter oil spill in the Atlantic, which took place on November 2018, due to a flawed flowline connector. The company would use the DOF’s Skandi Vinland vessel to replace the flawed flowline connector.
An oil tanker that damaged in a bombing for which Iran was blamed, returned to its operations, with its first destination being Iran. The ship was attacked off UAE during May, with sources reporting that it is now full and transports fuel to Iran. ‘Andrea Victory’ is sailing in the northern Persian Gulf, indicating Iran’s Bandar Imam Khomeini as its destination.
The American Petroleum Institute released its latest Monthly Statistical Report and API Industry Outlook outlining the increased growth and resiliency of the US natural gas and oil industry. Namely, US crude oil production reached a new all-time high of 12.2 million barrels per day in May 2019.
Oil prices increased as tensions remain high between Iran and the US. What is more, the US Secretary of State Mike Pompeo talked about significant sanctions against Iran, which could be announced soon. Brent futures were up 25 cents, an increase of 0.4%, reaching $65.45 a barrel. In addition, West Texas Intermediate crude was up 37 cents, or 0.6%, at $57.80 a barrel.
The Norwegian Petroleum Directorate issued the preliminary production figures for May 2019, indicating an average daily production of 1,599,000 barrels of oil, NGL and condensate. These numbers are a decrease of 120,000 barrels per day in comparison to April.
