Largest US Oil Storage Facility Could Face Operational Issues
October 16, 2023
Energy prices took a big jump on Friday mainly driven by the US putting sanction on two shipping companies alleged to have violated the G& price cap on handle Russian crude.
The ongoing situation in Israel keeps the market uneasy and prices jump or ease back on the news headlines.
The Baker Hughes Rig Count was up 4 oil rigs in Friday’s report. Total oil rigs now sit at 501 and last year there were 610. Despite the lower number of oil rigs the EIA reported a new record for US crude production last week at 13.2 million bpd.
The US GDP final estimate for Q2 was 2.1%, slightly below the 2.3% expected by economist. The economy is still growing well, which could incentivize the Fed to raise interest rates more.
Energy experts are warning that low pressure at Cushing oil facilities due to low oil stocks could cause operational problems at the us largest storage facility.
Commerzbank Research said, “We are raising our forecast for a barrel of Brent at year’s end from $85 to $90.”