Iranian Port Fire Burns Ships
July 16th, 2020
The DOE inventory report called crude oil down a big 7.49 million barrels and the stocks at Cushing, Ok were up 949,000 barrels. Gasoline supplies were down big also at 3.147 million barrels and distillates were down 453,000 barrels. Oil prices rallied on the bullish inventory report but were capped by the OPEC + decision to ease production cuts.
Propane inventory was up bigger than expected at 3.525 million barrels putting total stocks at 80.48 million barrels. The Midwest stocks were up 812,000 barrel and the Gulf Coast Stocks were up 2.171 million barrels.
A ministerial panel of OPEC and its allies , including Rissa, agreed on Wednesday on moving on to the next phase of a pact on oil output cuts by easing reductions starting in August. The panel, known as JMMC, also agreed on a compensation schedule by some countries who have produced above their targets in May and June, which means the effective cuts will be deeper even after cuts are formally eased.
Saudi Ariba’s Energy Minister, Price Abdulaziz bin Salman Al Saud , said OPEC+ producers are moving on to the next phase of the oil output cuts agreement and will ease record oil supply cuts starting in August. OPEC+ producers have been cutting output by 9.7 million bpd since May. After July, the record cuts are due to fall to 7.7 million bpd until December. Saudi Arabia’s Energy Minister said the effective cuts will be deeper than 7.7 million bpd due to compensation Bu countries which overproduced in previous months. In December OPEC+ producers will review how long oil cuts will last.
The official IRNA news agency reported that at least three ships are on fire at the Busher port in southern Iran. Meanwhile , the Tasnim news agency reported that at least seven ships caught fire at the port of Busher. Iran reported that at least seven hips have been burnt in the port fire. There have been several explosions and fires around Iranian military, nuclear and industrial facilities since late June.