collected by :Molly Tony
In particular, we’ll be watching for any news surrounding oil production in OPEC member nations as well as Libya and around the world.
CHK Gains Big On Oil NewsAs mentioned above, Chesapeake Energy Corporation is having a strong day in the market today as the result of multiple pieces of news surrounding oil.
We’re seeing quite a bit of news surrounding oil at the moment, suggesting that the value of the commodity will climb.
News is breaking this morning that Libyan oil supplies are seeing severe disruption.
The two big stories suggesting that oil’s price may rise include:Libya – News is breaking this morning that Libyan oil supplies are seeing severe disruption.
as mentioned in
Oil Gains as Libyan Crude Drop Offsets What OPEC Curbs Couldn’t
Libya’s state-run National Oil Corp. was said to declare force majeure on loadings of Sharara crude from the Zawiya oil terminal and on loadings of Wafa field condensate from the Mellitah terminal.
Oil rose after a pipeline halt reduced output in OPEC member Libya, countering concerns that a U.S. surplus shows little sign of diminishing.
Clashes between armed groups in the nation have previously led to market disruptions, and the latest news drove New York oil futures up as much as 1 percent after boosting them 1.3 percent on Tuesday.
Libya’s output was said to fall to about 500,000 barrels a day after a pipeline carrying crude from the Sharara field — its biggest — stopped operating.
“The global oil market is now in deficit because of production curbs by OPEC and Russia,” said Giovanni Staunovo, an analyst at UBS Group AG in Zurich.
as mentioned in OPEC’s supply cuts are providing a windfall for producers of heavy crude from Western Canada and the Gulf of Mexico.
Prices for Western Canadian Select and Mars grades have strengthened relative to benchmark West Texas Intermediate since OPEC began implementing its reductions this year.
“We are seeing a real hunger for the heavy oil,” Bill McCaffrey, chief executive officer of MEG Energy Corp., a Canadian oil sands producer, said in a Feb. 9 conference call.
Western Canadian Select was $12.70 a barrel below West Texas Intermediate Wednesday, according to data compiled by Bloomberg, the narrowest discount since June.
That’s quite a difference in cash flow compared with what they had before.”The brighter outlook for heavy crude has prompted some oil sands producers to resume expansion programs.