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Brent crude was down 30 cents, or 0.7%, at $41.42 per barrel. U.S. West Texas Intermediate (WTI) crude for October,dropped 34 cents, or 0.9%, to $39.46.
As the UK Lockdown measures become stricter for the foreseeable future, America are relieved at the fact that Storm Beta has weakened along the Gulf Coast. On the other hand, this could trigger another increase in supply from the previous draw reported by the EIA.
Motiva Enterprises’ 607,000 bpd facility is now up and running, planning to operate throughout the storm after just one week since restarting since Hurricane Laura. Total has advised night-shift workers to pack overnight bags in case flooding causes them to become trapped in their 225,000 bpd facility.
Libya’s oil production is expected to reach over 260,000 bpd by the start of next week as it begins to ramp up production following the lifting of the production blockade, the exports will resume from ‘secure ports’ with tankers arriving on Wednesday.
Oil prices fell 5% on Monday following the news out of Libya, combined with the imploding demand caused by the resurgence of coronavirus cases. Libya’s maximum output accounts for over 1% of total world supply before the blockade, which was slashed to just 100,000 bpd for the last 8 months. Libya remains in chaos a decade on from the overthrow of Gaddafi, still with no central government.
However, oil prices on Tuesday rose on the news that enhanced lockdowns will only have a limited impact on oil demand, partly reversing Monday losses. More on OPEC, Iran’s semi-autonomous Kurdish region is a source of
possible oil smuggling and overproduction which has meant that it is not complying with OPEC cuts.
Ali Allawi told the Powering Iraq virtual conference that there were reasons to believe that KRG is not cutting back to limits required by OPEC and there may be smuggling within the region that produces up to 470,000 bpd.
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