No timeline set to restart Nigeria’s cracked pipeline as oil price soars, OPEC pumps more

0
350

Iraq aligns with Iran, Venezuela to resist Saudis, Russia

Crude rose to the highest in more than a week as cracks in a key pipeline threatened Nigerian oil exports and a schism deepened within OPEC over whether to allow more crude to flow onto global markets.

Futures rose as much as 0.9 percent in New York on Monday. New leaks have been discovered in a Nigerian pipeline that’s been shut since late last week and the operator provided no estimate for when deliveries will resume. Meanwhile, Iraq joined Iran and Venezuela in panning Saudi Arabian suggestions that it’s time to unwind output caps.

The Nigerian outage involves “a big pipe, big delivery point,” said Bob Yawger, director of futures at Mizuho Securities USA Inc. in New York. At the same time, any signals that major producers like the Saudis are boosting output are “going to tend to weigh on the market.”

The self-discipline of the OPEC-led coalition that adopted historic supply restraints in early 2017 may already be slipping. Russia lifted crude output 140,000 barrels a day above its cap in the first week of June, according to a person with knowledge of the matter. Saudi Arabia raised production last month to the highest since October, according to a person familiar with the kingdom’s disclosures to the cartel.

Russia and the Saudi kingdom are set to formally propose a gradual production increase when OPEC and allies gather in Vienna on June 22-23.

West Texas Intermediate crude for July delivery rose 42 cents to $66.16 a barrel at 12:21 p.m. on the New York Mercantile Exchange. Total volume traded was about 23 percent below the 100-day average.

Brent futures for August settlement added 6 cents to $76.52 on the London-based ICE Futures Europe exchange, and traded at a $10.43 premium to WTI for the same month.

OPEC and allied producers haven’t reached their objectives and shouldn’t be influenced by calls to pump more oil, Iraqi Oil Minister Jabbar al-Luaibi said.

In the U.S., stockpiles stored at the pipeline complex in Cushing, Oklahoma, fell by an estimated 900,000 barrels last week, according to a forecast compiled by Bloomberg.

Other oil-market news:

Gasoline futures slid 0.3 percent to $2.1097 a gallon.
U.S. crude inventories probably dropped by 1.5 million barrels last week, according to the median estimate of analysts surveyed by Bloomberg.
— With assistance by Tsuyoshi Inajima, and Grant Smith

SHARE
Previous article
Next articleMore delays to Nigerian Bonny Light as crude pipeline closes
Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA).

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.