• Monday, June 24, 2024
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Worries of market glut shadow oil market again


Oil prices are slightly down Monday amid worries that a global glut and refined product will continue to weigh on markets according Goldman Sachs.

Brent is lower at $45.61 per barrel in early trading  as traders digest latest US oil data.

The worry over US oil build up was worsened by reports that Iraqi crude exports are on the rise. This is in sharp contrast to what is happening in Africa’s largest economy and producer where government ineptitude over the years has led to a 50% cut in the spending of IOCs in Nigeria and no new investment is coming to the sector.

A 45 $/bbl handle on Brent is likely to get interest from European consumers today as oil enters new lows for the month.

Reports say OPEC cargoes, excluding those from Ecuador, Angola, Indonesia and Gabon, will increase 60kbbl/day to 24m bbl/day in 4 weeks to August 6 compared to previous period to July 9.

Mideast shipments, including from non-OPEC nations Oman and Yemen, will rise by 50kbbl/day to 17.39m bbl/day in period. Crude on tankers is also said to increase to 495.88m bbl vs 491.67m bbl. and this data excludes volumes in floating storage.

In particular, Iraq’s oil exports are set to rise in July, according to loading data and an industry source, putting supply growth from OPEC’s second-largest producer back on track after two months of declines. Exports from southern Iraq in the first 21 days of July have averaged 3.28m bbl/day, according to loading data tracked by Reuters and an industry source. That would be up from 3.18m bbl in June.