North Sea Forties Pipeline System at a Hault

Author: Pam Corn   Date:

The big story this week is North Sea Forties Pipeline System halt for maintenance. The pipeline supplies 40% of UK crude supply and supported the Brent/WTI price spread.

This should encourage more US Crude Exports and near term help balance US over supplied market and put in a floor for crude prices.

12/12 trading saw 2017 highs achieved for Crude and diesel NYMEX contracts until profit taking amid the EIA monthly outlook of crude production at 9.7 million b/d pushed prices lower. How oversupplied is the US market? 9.7 million b/d is the highest production figure sine 1970!

The above news overshadows colder than normal temps much of the US. Heating Oil dealers report excellent demand and we see that in lifting’s throughout our system.

Unfortunately, the forecast for the third week of December is milder than normal temps for much of the US.

Where will price go from here? How long will the Forties Pipeline be down? Will US production continue to rise? Will OPEC producers stay committed to production cuts in the face of higher prices?

This all leads to price uncertainty and volatility. Talk to us about how to manage this volatility.

Click here to find out how.

Post Views: 786
Written by:

As Director of Marketing for Guttman Holdings, I lead our advertising, digital marketing, branding, and public relations strategies, and share my expertise to communicate key messaging to all our stakeholders. With my diversified leadership background, I also drive innovation and cutting-edge business practice and results, to generate interest in Guttman Energy, Guttman Renewables, and Source One service offerings.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED “AS IS,” WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.