US cash crude grades fall as Middle East supply disruption fears ease
US cash crude grades broadly fell on Monday, dealers said, on hopes of supply disruptions in the Middle East easing. Meanwhile, a total of 17 commodity vessels transited the Strait of Hormuz on the weekend, down from 37 a week earlier, shipping data showed on Monday, as tension in the Gulf persisted with the US and Iran in stalemate.
HOUSTON, Sept 21 (Reuters) — Grades broadly fell on Monday, dealers said, on hopes of supply disruptions in the Middle East easing. com showed, as the kingdom increased loadings from Gulf export terminals after an attack disrupted shipments via its east-west pipeline to the Red Sea. Meanwhile, a total of 17 commodity vessels transited the Strait of Hormuz on the weekend, down from 37 a week earlier, shipping data showed on Monday, as tension in the Gulf persisted with the US and Iran in stalemate. Bank Barclays said oil prices could potentially rise another 50% from current levels before markets reach an organic balance if the Middle East situation persists.
Adding to supply tightness, Libya's Sharara oilfield has seen a partial reduction in production, National Oil Corporation Chair Massoud Suleman told Reuters on Monday. Production at the field has fallen by around 200,000 barrels per day and is currently between 100,000 and 105,000 bpd, two engineers at the field told Reuters. 6 million barrels last week, the lowest level since October 1982, according to data from the Department of Energy. Oil production in North Dakota rose 2,000 barrels-per-day (bpd) to 1,157,000 bpd in July, monthly data from the state Industrial Commission showed.
On the refining side, the restart of key units at Exxon Mobil's 275,000-barrel-per-day refinery in Joliet, Illinois, was in progress one week after plant-wide shutdown due to power outage, consultancy Wood Mackenzie said on Monday. 34 a barrel on Monday. 78 a barrel on Monday. 10.
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